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 November 30, 2023

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 ☒

As of January 5, 2024, E2open Parent Holdings, Inc. had 305,999,321 shares of Class A common stock outstanding.

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	10
	Notes to Unaudited Condensed Consolidated Financial Statements	11
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	36
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
Item 4.	Controls and Procedures	54
PART II.	Other Information	54
Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	55
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	55
Item 5.	Other Information	55
Item 6.	Exhibits	55
Signatures		56

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
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
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
RCU	restricted common units representing Series 2 of E2open Holdings, LLC
SCM	omni-channel and supply chain management
SEC	U.S. Securities and Exchange Commission
SOFR	Secured Overnight Financing Rate
SONIA	Sterling Overnight Index Average
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 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:

•the effect of the volatile, negative or uncertain macro-economic and political conditions, inflation, fluctuations in foreign currency exchange rates and the potential effects of these factors on our business, our slowing growth rate, results of operations and financial condition as well as our clients' businesses and levels of business activity;

•changes in market interest rates particularly on our variable rate debt, including the recent significant increases in market interest rates experienced in fiscal 2023 and that may continue to increase in fiscal year 2024;

•uncertainty regarding the SOFR's suitability as a LIBOR replacement and potential volatility in our variable rate debt to the unknown outcomes of the transition to SOFR rate movements;

•the inability to realize the value of the goodwill and intangible assets, which could result in the incurrence of material charges related to the impairment of those assets;

•the inability to develop and market new product offerings and monetize our network;

•the slowing of our growth rate due to lower than anticipated new bookings and higher than expected churn;

•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 terms favorable to us;

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

•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;

•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, 2023, filed with the SEC on May 1, 2023 (2023 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)	November 30, 2023			February 28, 2023
	(Unaudited)
Assets
Cash and cash equivalents	$	110,279		$	93,032
Restricted cash		19,659			11,310
Accounts receivable, net		127,330			174,809
Prepaid expenses and other current assets		30,483			25,200
Total current assets		287,751			304,351
Goodwill		1,846,263			2,927,807
Intangible assets, net		886,315			1,051,124
Property and equipment, net		70,024			72,476
Operating lease right-of-use assets		21,580			18,758
Other noncurrent assets		28,559			25,659
Total assets	$	3,140,492		$	4,400,175
Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities	$	83,196		$	97,491
Channel client deposits payable		19,659			11,310
Deferred revenue		176,253			203,824
Current portion of notes payable		11,122			11,144
Current portion of operating lease obligations		7,317			7,622
Current portion of financing lease obligations		1,120			2,582
Income taxes payable		1,721			2,190
Total current liabilities		300,388			336,163
Long-term deferred revenue		2,833			2,507
Operating lease obligations		17,959			15,379
Financing lease obligations		3,188			1,049
Notes payable		1,038,908			1,043,636
Tax receivable agreement liability		59,663			69,745
Warrant liability		10,830			29,616
Contingent consideration		14,188			29,548
Deferred taxes		66,038			144,529
Other noncurrent liabilities		721			1,083
Total liabilities		1,514,716			1,673,255
Commitments and Contingencies (Note 26)
Stockholders' Equity
Class A common stock; $0.0001 par value, 2,500,000,000 shares authorized;     304,564,709 and 302,582,007 issued and 304,388,055 and 302,405,353 outstanding as of     November 30, 2023 and February 28, 2023, respectively		30			30
Class V common stock; $0.0001 par value; 42,747,890 shares authorized; 32,722,920     and 32,992,007 shares issued and outstanding as of November 30, 2023 and     February 28, 2023		—			—
Series B-1 common stock; $0.0001 par value; 9,000,000 shares authorized; 94 shares     issued and outstanding as of November 30 2023 and February 28, 2023		—			—
Series B-2 common stock; $0.0001 par value; 4,000,000 shares authorized; 3,372,184 shares     issued and outstanding as of November 30, 2023 and February 28, 2023		—			—
Additional paid-in capital		3,395,158			3,378,633
Accumulated other comprehensive loss		(45,892	)		(68,603	)
Accumulated deficit		(1,831,502	)		(803,679	)
Treasury stock, at cost: 176,654 shares as of November 30, 2023 and February 28, 2023		(2,473	)		(2,473	)
Total E2open Parent Holdings, Inc. equity		1,515,321			2,503,908
Noncontrolling interest		110,455			223,012
Total stockholders' equity		1,625,776			2,726,920
Total liabilities and stockholders' equity	$	3,140,492		$	4,400,175

See notes to unaudited condensed consolidated financial statements.

5

E2open Parent Holdings, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended November 30,						Nine Months Ended November 30,
(In thousands, except per share amounts)	2023			2022			2023			2022
Revenue
Subscriptions	$	132,800		$	134,884		$	402,437		$	396,052
Professional services and other		24,697			30,009			73,668			89,898
Total revenue		157,497			164,893			476,105			485,950
Cost of Revenue
Subscriptions		36,689			35,931			110,013			105,367
Professional services and other		17,642			20,417			55,014			63,446
Amortization of acquired intangible assets		24,590			24,402			73,918			73,869
Total cost of revenue		78,921			80,750			238,945			242,682
Gross Profit		78,576			84,143			237,160			243,268
Operating Expenses
Research and development		24,937			24,939			75,748			73,088
Sales and marketing		22,583			20,448			63,692			67,348
General and administrative		24,739			23,073			85,414			66,774
Acquisition-related expenses		9			1,969			416			14,313
Amortization of acquired intangible assets		20,014			19,965			60,135			62,523
Goodwill impairment		687,700			—			1,097,741			514,816
Intangible asset impairment		30,000			—			34,000			—
Total operating expenses		809,982			90,394			1,417,146			798,862
Loss from operations		(731,406	)		(6,251	)		(1,179,986	)		(555,594	)
Other income (expense)
Interest and other expense, net		(24,643	)		(21,270	)		(75,886	)		(54,732	)
Gain from change in tax receivable agreement liability		2,888			2,697			8,355			9,089
Gain from change in fair value of warrant liability		2,617			16,150			18,786			36,764
Gain from change in fair value of contingent     consideration		5,100			6,300			15,360			17,760
Total other (expense) income		(14,038	)		3,877			(33,385	)		8,881
Loss before income tax provision		(745,444	)		(2,374	)		(1,213,371	)		(546,713	)
Income tax benefit		5,413			7,877			73,827			130,010
Net (loss) income		(740,031	)		5,503			(1,139,544	)		(416,703	)
Less: Net (loss) income attributable to     noncontrolling interest		(72,475	)		698			(111,721	)		(41,464	)
Net (loss) income attributable to E2open Parent     Holdings, Inc.	$	(667,556	)	$	4,805		$	(1,027,823	)	$	(375,239	)
Weighted average common shares outstanding:
Basic		303,848			302,201			303,188			301,822
Diluted		303,848			302,359			303,188			301,822
Net (loss) income attributable to E2open Parent     Holdings, Inc. common shareholders per share:
Basic	$	(2.20	)	$	0.02		$	(3.39	)	$	(1.24	)
Diluted	$	(2.20	)	$	0.02		$	(3.39	)	$	(1.24	)

See notes to unaudited condensed consolidated financial statements.

6

E2open Parent Holdings, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(Unaudited)

	Three Months Ended November 30,						Nine Months Ended November 30,
(In thousands)	2023			2022			2023			2022
Net (loss) income	$	(740,031	)	$	5,503		$	(1,139,544	)	$	(416,703	)
Other comprehensive income (loss), net:
Net foreign currency translation income (loss), net     of tax of ($5,395) and $10,275 as of     November 30, 2022		1,339			14,369			20,271			(58,086	)
Net deferred (losses) gains on foreign exchange     forward contracts		(4	)		(420	)		729			(627	)
Net deferred (losses) gains on interest rate collars		(1,028	)		—			1,711			—
Total other comprehensive income (loss), net		307			13,949			22,711			(58,713	)
Comprehensive (loss) income		(739,724	)		19,452			(1,116,833	)		(475,416	)
Less: Comprehensive (loss) income attributable to     noncontrolling interest		(72,449	)		2,112			(109,494	)		(47,306	)
Comprehensive (loss) income attributable to E2open     Parent Holdings, Inc.	$	(667,275	)	$	17,340		$	(1,007,339	)	$	(428,110	)

See notes to unaudited 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 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,     net of tax		—			(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
Share-based compensation		—			4,797			—			—			—			4,797			—			4,797
Conversion of Common     Units to common     stock		—			625			—			—			—			625			(625	)		—
Vesting of restricted stock     awards, net of shares     withheld for taxes		(1	)		(339	)		—			—			—			(340	)		—			(340	)
Impact of Common Unit     conversions on Tax     Receivable Agreement,     net of tax		—			(1,010	)		—			—			—			(1,010	)		—			(1,010	)
Other comprehensive income		—			—			13,949			—			—			13,949			—			13,949
Net income		—			—			—			4,805			—			4,805			698			5,503
Balance, November 30, 2022	$	30		$	3,374,388		$	(77,732	)	$	(530,215	)	$	(2,473	)	$	2,763,998		$	253,719		$	3,017,717

See notes to unaudited condensed consolidated financial statements.

8

E2open Parent Holdings, Inc.

Condensed Consolidated Statements of Stockholders' Equity

(Continued)

(Unaudited)

(In thousands)	Common Stock		Additional Paid-In Capital			Accumulated Other Comprehensive (Loss) Income			Accumulated Deficit			Treasury Stock			Total E2open Equity			Noncontrolling Interest			Total Equity
Balance, February 28, 2023	$	30	$	3,378,633		$	(68,603	)	$	(803,679	)	$	(2,473	)	$	2,503,908		$	223,012		$	2,726,920
Share-based compensation		—		4,441			—			—			—			4,441			—			4,441
Vesting of restricted stock     awards, net of shares     withheld for taxes		—		(1,830	)		—			—			—			(1,830	)		—			(1,830	)
Other comprehensive income		—		—			8,170			—			—			8,170			—			8,170
Net loss		—		—			—			(325,395	)		—			(325,395	)		(35,489	)		(360,884	)
Balance, May 31, 2023		30		3,381,244			(60,433	)		(1,129,074	)		(2,473	)		2,189,294			187,523			2,376,817
Share-based compensation		—		7,426			—			—			—			7,426			—			7,426
Vesting of restricted stock     awards, net of shares     withheld for taxes		—		(100	)		—			—			—			(100	)		—			(100	)
Other comprehensive income		—		—			14,234			—			—			14,234			—			14,234
Net loss		—		—			—			(34,872	)		—			(34,872	)		(3,757	)		(38,629	)
Balance, August 31, 2023		30		3,388,570			(46,199	)		(1,163,946	)		(2,473	)		2,175,982			183,766			2,359,748
Share-based compensation		—		6,845			—			—			—			6,845			—			6,845
Conversion of Common     Units to common     stock		—		836			—			—			—			836			(836	)		—
Vesting of restricted stock     awards, net of shares     withheld for taxes		—		(1,129	)		—			—			—			(1,129	)		—			(1,129	)
Impact of Common Unit     conversions on Tax     Receivable Agreement,     net of tax		—		36			—			—			—			36			—			36
Other comprehensive income		—		—			307			—			—			307			—			307
Net loss		—		—			—			(667,556	)		—			(667,556	)		(72,475	)		(740,031	)
Balance, November 30, 2023	$	30	$	3,395,158		$	(45,892	)	$	(1,831,502	)	$	(2,473	)	$	1,515,321		$	110,455		$	1,625,776

See notes to unaudited condensed consolidated financial statements.

9

E2open Parent Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended November 30,
(In thousands)	2023			2022
Cash flows from operating activities
Net loss	$	(1,139,544	)	$	(416,703	)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization		160,758			159,831
Amortization of deferred commissions		4,452			2,878
Provision for credit losses		2,657			315
Amortization of debt issuance costs		3,961			3,783
Amortization of operating lease right-of-use assets		5,454			5,813
Share-based compensation		18,728			13,139
Deferred income taxes		(79,791	)		(143,012	)
Right-of-use assets impairment charge		619			4,137
Goodwill impairment charge		1,097,741			514,816
Indefinite-lived intangible asset impairment charge		34,000			—
Gain from change in tax receivable agreement liability		(8,355	)		(9,089	)
Gain from change in fair value of warrant liability		(18,786	)		(36,764	)
Gain from change in fair value of contingent consideration		(15,360	)		(17,760	)
Gain on operating lease termination		(187	)		—
(Gain) loss on disposal of property and equipment		(16	)		537
Changes in operating assets and liabilities:
Accounts receivable		44,822			10,876
Prepaid expenses and other current assets		(3,972	)		4,311
Other noncurrent assets		(7,351	)		(4,094	)
Accounts payable and accrued liabilities		(16,712	)		(12,946	)
Channel client deposits payable		8,349			(5,943	)
Deferred revenue		(27,244	)		(26,899	)
Changes in other liabilities		(7,568	)		(4,075	)
Net cash provided by operating activities		56,655			43,151
Cash flows from investing activities
Payments for acquisitions - net of cash acquired		—			(179,243	)
Capital expenditures		(22,301	)		(40,473	)
Minority investment in private firm		—			(3,000	)
Net cash used in investing activities		(22,301	)		(222,716	)
Cash flows from financing activities
Proceeds from indebtedness		—			215,000
Repayments of indebtedness		(8,366	)		(103,174	)
Repayments of financing lease obligations		(2,432	)		(2,312	)
Repurchase of common units		—			(1,397	)
Payments of debt issuance costs		—			(4,766	)
Net cash (used in) provided by financing activities		(10,798	)		103,351
Effect of exchange rate changes on cash and cash equivalents		2,040			478
Net increase (decrease) in cash, cash equivalents and restricted cash		25,596			(75,736	)
Cash, cash equivalents and restricted cash at beginning of period		104,342			174,554
Cash, cash equivalents and restricted cash at end of period	$	129,938		$	98,818
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	110,279		$	85,688
Restricted cash		19,659			13,130
Total cash, cash equivalents and restricted cash	$	129,938		$	98,818

See notes to unaudited condensed consolidated financial statements.

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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.

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." (the Company or 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 connected supply chain software platform that enables the largest companies to transform the way they make, move and sell goods and services. With the broadest cloud-native global platform purpose-built for the modern supply chains, we connect manufacturing, logistics, channel and distributing partners as one multi-enterprise network. Our SaaS platform anticipates disruptions and opportunities to help companies improve efficiency, reduce waste and operate sustainably.

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. 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. The unaudited operating results for interim periods reported are not necessarily indicative of the results for the entire fiscal year. For further information, refer to the consolidated financial statements and notes thereto included in our 2023 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.

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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2. Accounting Standards

Recently Adopted Accounting Guidance

In March 2020, the Financial Accounting Standards Board (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 expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criterion are met. On January 7, 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. The optional expedients and exceptions can be applied to contract modifications made until December 31, 2024. We have transitioned our debt instruments from LIBOR to SOFR and our Tax Receivable Agreement liability from LIBOR plus 100 basis points to SOFR plus the applicable spread for the quarter. The change in interest rates on our debt and Tax Receivable Agreement liability did not have a material effect on our financial position or results of operations.

Recent Accounting Guidance Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for our fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. We are currently evaluating the effect of adopting ASU 2023-07 on our disclosures.

In December 2023, the FASB issued 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures to enhance income tax information primarily through changes in the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated statements and related disclosures.

3. Acquisitions

Logistyx Acquisition

On March 2, 2022, E2open, LLC, our subsidiary, acquired all of the issued and outstanding membership interests of Logistyx for a purchase price of $185 million, including $90 million paid in cash at closing (Logistyx Acquisition). An additional $95 million, which was subject to standard working capital adjustments and other contractual provisions, was paid in two installments on May 31, 2022 and September 1, 2022. The May 31, 2022 payment of $37.4 million was paid in cash. On September 1, 2022, E2open, LLC made a cash payment of $54.0 million to Logistyx as the final installment payment for the Logistyx Acquisition which reflected a working capital adjustment of $3.6 million. An additional payment of $1.1 million for working capital was made to Logistyx on December 5, 2022.

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
Working capital adjustment		(2,550	)
Estimated consideration paid for the Logistyx Acquisition	$	180,806

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

($ in thousands)	Final Purchase Price Allocation
Cash and cash equivalents	$	1,563
Account receivable, net		5,332
Other current assets		3,335
Property and equipment, net		144
Intangible assets		66,800
Goodwill (1)		123,746
Non-current assets		619
Accounts payable		(5,897	)
Current liabilities		(3,931	)
Deferred revenue (2)		(10,747	)
Non-current liabilities		(158	)
Total assets acquired and liabilities assumed	$	180,806

(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 was 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.

The fair value of the intangible assets was 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.

We incurred $4.1 million of expenses directly related to the Logistyx Acquisition through February 28, 2023 which are included in acquisition-related expenses 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 in acquisition-related advisory fees and other expenses related to the Logistyx Acquisition on behalf of Logistyx, which were accounted for as part of the purchase price consideration.

4. Accounts Receivable

Accounts receivable, net consisted of the following:

($ in thousands)	November 30, 2023			February 28, 2023
Accounts receivable	$	110,510		$	153,618
Unbilled receivables		23,138			25,481
Less: Allowance for credit losses		(6,318	)		(4,290	)
Accounts receivable, net	$	127,330		$	174,809

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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.

Account balances are written off against the allowance for credit losses when we believe that it is probable that the receivable balance will not be recovered.

The allowance for credit losses was comprised of the following:

($ in thousands)	Amount
Balance, February 28, 2022	$	(3,055	)
Logistyx Acquisition		(267	)
Additions		(2,185	)
Write-offs		1,217
Balance, February 28, 2023		(4,290	)
Additions		(4,276	)
Write-offs		2,248
Balance, November 30, 2023	$	(6,318	)

5. Prepaid and Other Current Assets

Prepaid expenses and other current assets consisted of the following:

($ in thousands)	November 30, 2023		February 28, 2023
Prepaid software and hardware license and maintenance fees	$	9,576	$	9,103
Income and other taxes receivable		4,647		4,618
Prepaid insurance		1,800		1,337
Deferred commissions		6,498		4,771
Prepaid marketing		1,022		1,037
Security deposits		1,109		2,377
Other prepaid expenses and other current assets		5,831		1,957
Total prepaid expenses and other current assets	$	30,483	$	25,200

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.

6. Goodwill

We test goodwill for impairment on an annual basis or whenever events or changes occur that would more-likely-than not reduce the fair value of a reporting unit below its carrying value between annual impairment tests. As we have only one reporting unit, any goodwill impairment assessment is performed at the Company level.

During the first quarter of fiscal 2024, third quarter of fiscal 2024 and the second quarter of fiscal 2023, the market price of our Class A Common Stock and market capitalization declined significantly. These declines resulted in us determining that triggering events occurred and interim goodwill impairment assessments were performed.

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The fair value of E2open was calculated using an equally weighted combination of three different methods: discounted cash flow method, guideline public company method and guideline transaction method. The discounted cash flow method was based on the present value of estimated future cash flows which were based on management's estimates of projected net sales, net operating income margins and terminal growth rates, 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 projected cash flows. Under the guideline public company method, the fair value was based on our current and forward-looking earnings multiples using management's estimates of projected net sales and adjusted EBITDA margins with consideration of market premiums. The unobservable inputs used to measure the fair value included projected net sales, forecasted adjusted EBITDA margins, weighted average cost of capital, normalized working capital level, capital expenditures assumptions, profitability projections, 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 E2open taking into consideration management's estimate of projected net sales and net operating income margins.

During the first and third quarters of fiscal 2024, we lowered our projections for net sales and net operating margins due to lower than anticipated new bookings, lower variable delivery fees, higher than expected churn and macroeconomic impacts primarily in the technology, freight and transportation sectors.

The three approaches generated similar results and indicated that the fair value of E2open's equity and goodwill was less than its carrying amount for the interim assessments. Therefore, during the three months ended November 30, 2023, we recognized a goodwill impairment charge of $687.7 million. We did not recognize a goodwill impairment charge during the three months ended November 30, 2022. We recognized a goodwill impairment charge of $1,097.7 million and $514.8 million during the nine months ended November 30, 2023 and 2022, respectively.

The following table presents the changes in goodwill:

($ in thousands)	Amount
Balance, February 28, 2022	$	3,756,871
BluJay Acquisition adjustment (1)		(5,455	)
Logistyx Acquisition (2)		123,746
Impairment charge		(901,566	)
Disposition (3)		(1,306	)
Currency translation adjustment		(44,483	)
Balance, February 28, 2023		2,927,807
Impairment charge		(1,097,741	)
Currency translation adjustment		16,197
Balance, November 30, 2023	$	1,846,263

(1)Represents the goodwill acquired in the BluJay Acquisition as of September 1, 2021 and subsequent purchase price adjustments.

(2)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.

(3)Represents the goodwill that was sold as part of the subsidiary disposition in February 2023.

7. Intangible Assets, Net

We test our indefinite-lived intangible asset for impairment on an annual basis or whenever events or changes occur that would more-likely-than not reduce the fair value of the indefinite-lived intangible asset below its carrying value between annual impairment tests. As we have only one reporting unit, any indefinite-lived intangible asset assessment is performed at the Company level.

During the first and third quarters of fiscal 2024, 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 indefinite-lived intangible asset impairment assessment was performed.

During the first and third quarters of fiscal 2024, we lowered our projections for net sales and net operating margins due to lower than anticipated new bookings, lower variable delivery fees, higher than expected churn and macroeconomic impacts primarily in the technology, freight and transportation sectors.

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The fair value of the indefinite-lived intangible asset was calculated using the relief from royalty payments method which is based on management's estimates of projected net sales and terminal growth rates, taking into consideration market and industry conditions. The royalty rate used was based on royalty rates of companies with similar characteristics to E2open. 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 projected net sales.

The interim assessment indicated that the fair value of E2open's indefinite-lived intangible asset was less than its carrying amount; therefore, in the three and nine months ended November 30, 2023, we recognized an impairment charge of $30.0 million and $34.0 million to intangible assets, net, respectively, for the indefinite-lived trademark / trade name.

We did not record an indefinite-lived intangible asset impairment charge for the three and nine months ended November 30, 2022.

Intangible assets, net consisted of the following:

	November 30, 2023
($ in thousands)	Weighted Average Useful Life	Cost		Accumulated Amortization			Net
Indefinite-lived:
Trademark / Trade name	Indefinite	$	76,000	$	—		$	76,000
Definite-lived:
Client relationships	13.7		503,157		(175,617	)		327,540
Technology	7.3		692,142		(245,485	)		446,657
Content library	10.0		50,000		(14,122	)		35,878
Trade name	1.0		3,993		(3,993	)		—
Backlog	2.5		800		(560	)		240
Total definite-lived			1,250,092		(439,777	)		810,315
Total intangible assets		$	1,326,092	$	(439,777	)	$	886,315

	February 28, 2023
($ in thousands)	Weighted Average Useful Life	Cost		Accumulated Amortization			Net
Indefinite-lived:
Trademark / Trade name	Indefinite	$	110,000	$	—		$	110,000
Definite-lived:
Client relationships	13.8		500,975		(118,520	)		382,455
Technology	7.3		688,739		(170,178	)		518,561
Content library	10.0		50,000		(10,372	)		39,628
Trade name	1.0		3,843		(3,843	)		—
Backlog	2.5		800		(320	)		480
Total definite-lived			1,244,357		(303,233	)		941,124
Total intangible assets		$	1,354,357	$	(303,233	)	$	1,051,124

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

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 $44.6 million and $44.4 million for the three months ended November 30, 2023 and 2022, respectively. We recorded amortization expense related to intangible assets of $134.1 million and $136.4 million for the nine months ended November 30, 2023 and 2022, respectively.

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Future amortization of intangible assets is as follows as of November 30, 2023:

($ in thousands)	Amount
December 2023 - February 2024	$	44,857
2025		148,332
2026		117,238
2027		117,238
2028		92,306
Thereafter		290,344
Total future amortization	$	810,315

8. Property and Equipment, Net

Property and equipment, net consisted of the following:

($ in thousands)	November 30, 2023			February 28, 2023
Computer equipment	$	61,961		$	52,296
Software		27,054			26,430
Software development costs		49,236			35,631
Furniture and fixtures		3,262			3,032
Leasehold improvements		9,313			9,203
Gross property and equipment		150,826			126,592
Less accumulated depreciation and amortization		(80,802	)		(54,116	)
Property and equipment, net	$	70,024		$	72,476

Computer equipment and software include assets held under financing leases. Amortization of assets held under financing leases is included in depreciation expense. See Note 24, Leases for additional information regarding our financing leases.

Depreciation expense was $9.0 million and $8.1 million for the three months ended November 30, 2023 and 2022, respectively. Depreciation expense was $26.7 million and $23.4 million for the nine months ended November 30, 2023 and 2022, respectively.

We recognized $2.4 million and $1.4 million of amortized capitalized software development costs for the three months ended November 30, 2023 and 2022, respectively, and $6.7 million and $3.6 million for the nine months ended November 30, 2023 and 2022, respectively.

9. Investments

In February and May 2022, we made minority investments of $2.5 million each in a private firm focused on supply chain financing for a total investment of $5.0 million. We incurred $0.5 million of transaction fees related to this investment in May 2022.

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 have been 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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10. Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consisted of the following:

($ in thousands)	November 30, 2023		February 28, 2023
Accrued compensation	$	31,589	$	40,365
Accrued severance and retention		1,071		937
Trade accounts payable		29,719		32,859
Accrued litigation		1,690		400
Accrued professional services		3,897		3,346
Restructuring liability		146		213
Interest payable		—		5,324
Client deposits		2,630		2,574
Tax receivable agreement liability		1,691		—
Other		10,763		11,473
Total accounts payable and accrued liabilities	$	83,196	$	97,491

11. Tax Receivable Agreement

E2open Holdings entered into a 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 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 expire 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 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 we are 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 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 at the Closing Date. 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 Combinations, and relevant tax law, we 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, is revalued at the end of each reporting period with the gain or loss as well as the associated interest reflected in the gain (loss) from change in tax receivable agreement liability in the Condensed Consolidated Statements of Operations in the period in which the event occurred. Interest accrued on the Tax Receivable Agreement liability at a rate of LIBOR plus 100 basis points through June 30, 2023. As of July 1, 2023, interest accrues at SOFR plus the applicable spread for the quarter. In addition, under ASC 450, Contingencies, transactions with partnership unit holders after the acquisition date result in additional Tax Receivable Agreement liabilities that are recorded on a gross undiscounted basis. These transactions, such as a conversion of Common Units to Class A Common Stock, result in a change in the Tax Receivable Agreement liability and a charge to equity.

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The Tax Receivable Agreement liability was $61.4 million and $69.7 million as of November 30, 2023 and February 28, 2023, respectively, which represents the current and long-term portion of the liability. The determination of current and long-term is based on management's estimate of taxable income for the fiscal year and the determination that a Tax Receivable Agreement payment is due and payable within the next twelve months. To the extent the estimate differs from actual results, a reclass may be required for portions of the Tax Receivable Agreement liability between current and long-term.

The tax rate used in the calculation was 24.2% as of November 30, 2023 and February 28, 2023. The discount rate used for the ASC 805 calculation was 10.0% and 9.7% as of November 30, 2023 and February 28, 2023, respectively, based on the cost of debt plus an incremental premium. During the three months ended November 30, 2023 and 2022, a gain of $2.9 million and $2.7 million, respectively, was recorded as a change in the tax receivable agreement liability related to the ASC 805 discounted liability. During the nine months ended November 30, 2023 and 2022, a gain of $8.4 million and a gain of $9.1 million, respectively, was recorded as a change in the tax receivable agreement liability related to the ASC 805 discounted liability. During the nine months ended November 30, 2023 and 2022, the Tax Receivable Agreement liability under ASC 450 increased by a negligible amount and $0.7 million, respectively, related to exchanges of Common Units for Class A Common Stock with a corresponding charge to equity. No payments have been made to any Tax Receivable Agreement holders of E2open Holdings as of November 30, 2023.

12. Notes Payable

Notes payable outstanding were as follows:

($ in thousands)	November 30, 2023			February 28, 2023
2021 Term Loan	$	1,069,978		$	1,078,200
Other notes payable		347			492
Total notes payable		1,070,325			1,078,692
Less unamortized debt issuance costs		(20,295	)		(23,912	)
Total notes payable, net		1,050,030			1,054,780
Less current portion		(11,122	)		(11,144	)
Notes payable, less current portion, net	$	1,038,908		$	1,043,636

2021 Term Loan and Revolving Credit Facility

In February 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. In September 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. In April 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 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 payments 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 interest rates applicable to borrowings under the Credit Agreement are, at E2open, LLC’s option, either (1) a base rate, which is equal to the greater of (a) the Prime rate, (b) the Federal Reserve Bank of New York rate plus 0.5% and (c) the adjusted Eurocurrency Rate for a one month interest period plus 1% or (2) the adjusted Eurocurrency rate equal to the adjusted Eurocurrency rate for the applicable interest period multiplied by the statutory reserve rate, plus in the case of each of clauses (1) and (2), the Applicable Rate. The Applicable Rate (1) for base rate term loans ranges from 2.25% to 2.50% per annum, (2) for base rate revolving loans ranges from 1.50% to 2.00% per annum, (3) for Eurodollar term loans ranges from 3.25% to 3.50% per annum and (4) for Eurodollar revolving loans ranges from 2.50% to 3.00% per annum, in each case, based on the first lien leverage ratio. E2open, LLC will pay a commitment fee during the term of the Credit Agreement ranging from 0.25% to 0.375% per annum of the average daily undrawn portion of the revolving commitments based on the First Lien Leverage Ratio which represents the ratio of the Company’s secured consolidated total indebtedness to the Company’s consolidated EBITDA as specified in the Credit Agreement.

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Beginning July 1, 2023, the Eurocurrency Rate ceased to be applicable and was replaced by the SOFR Rate. The adjusted SOFR Rate shall be the SOFR Rate plus 0.11448% for a one-month interest rate loan, 0.26161% for a three-month interest rate loan and 0.42826% for a six-month interest rate loan. The Applicable Rate for SOFR Rate term loans shall range from 3.25% to 3.50% and revolving loans shall range from 2.50% to 3.00% based on the first lien leverage ratio. We can also borrow using a SONIA Rate. The Applicable Rate for SONIA Rate revolving loans shall range from 2.50% to 3.00%.

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 November 30, 2023 and February 28, 2023, there were $1,070.0 million and $1,078.2 million outstanding under the 2021 Term Loan, respectively, at an interest rate of 8.96% and 8.08%, respectively. The interest rates on the 2021 Term Loan were based on SOFR plus 350 basis points and LIBOR plus 350 basis points as of November 30, 2023 and February 28, 2023, 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 November 30, 2023 and February 28, 2023.

We were in compliance with the First Lien Leverage Ratio for the Credit Agreement as of November 30, 2023 and February 28, 2023.

Beginning in March 2023, we entered into zero-cost interest rate collars in the notional amount of $300.0 million to hedge our exposure to fluctuations in interest rates on the variable rate debt on a portion of our 2021 Term Loan. See Note 14, Financial Instruments for additional information.

13. Contingent Consideration

Business Combination

The contingent consideration liability is due to the issuance of Series B-2 common stock 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 is remeasured at each reporting date and adjusted if necessary. Any gain or loss recognized from the remeasurement is recorded in gain (loss) from the change in fair value of contingent consideration on the Condensed Consolidated Statements of Operations as nonoperating income (expense) as the change in fair value is not part of our core operating activities.

The contingent consideration liability was $14.2 million and $29.5 million as of November 30, 2023 and February 28, 2023, respectively. The fair value remeasurements resulted in a gain of $5.1 million and $6.3 million for the three months ended November 30, 2023 and 2022, respectively. The fair value remeasurements resulted in a gain of $15.4 million and $17.8 million for the nine months ended November 30, 2023 and 2022, respectively.

There were 3,372,184 shares of Series B-2 common stock outstanding as of November 30, 2023 and February 28, 2023. The Series B-2 common stock will automatically convert into 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. If any of the Series B-2 common stock does not vest on or before the 10-year anniversary of the Closing Date, such common stock will be canceled for no consideration.

There were 2,627,724 shares of Series 2 RCUs outstanding as of November 30, 2023 and February 28, 2023. 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 or (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.

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14. Financial Instruments

Cash Flow Hedging Activities

Foreign Exchange Forward Contracts

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 rupees. We have not hedged our exposure to revenue or expenses in other currencies.

As of November 30, 2023, our foreign exchange forward contracts have durations of approximately 9 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 estimated fair values of the foreign currency forward contracts:

($ in thousands)	November 30, 2023			February 28, 2023
Accounts payable and accrued liabilities	$	(127	)	$	(659	)
Other noncurrent liabilities		—			(197	)

We estimate the $0.1 million, net of tax, of losses on forward exchange currency derivatives instruments included in other comprehensive loss will be settled and reclassified into earnings within the next twelve months.

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 November 30, 2023, all of the foreign exchange forward contracts are in a liability position.

Interest Rate Collar Agreements

Our interest rate collar agreements (Collars) are designed and qualify as cash flow hedges. The Collars help manage our exposure to fluctuations in interest rates on the variable rate debt on a portion of our 2021 Term Loan. Changes in the fair value of the Collars designated as cash flow hedges will be recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and settled to interest expense over the term of the contracts.

On March 17, 2023, we entered into a Collar, effective March 31, 2023, with a notional amount of $200.0 million and a maturity date of March 31, 2026. The executed cap was 4.75% and the floor was 2.57%. On March 24, 2023, an additional Collar was executed, effective April 6, 2023, with a notional amount of $100.0 million and a maturity date of March 31, 2026. The executed cap was 4.50% and the floor was 2.56%. For both Collars, the cap and floor interest rates are based on LIBOR through July 31, 2023 and SOFR beginning July 31, 2023 through the respective maturity dates. The structure of the Collars is such that we receive an incremental amount if the Collar index exceeds the cap rate. Conversely, we pay an incremental amount if the Collar index falls below the floor rate. No payments are required if the Collar index falls between the cap and floor rates.

The following table represents the Condensed Consolidated Balance Sheets location and estimated fair value of the Collars:

($ in thousands)	Notional		November 30, 2023
Prepaid expenses and other current assets	$	200,000	$	401
Other noncurrent assets		200,000		535
Prepaid expenses and other current assets		100,000		332
Other noncurrent assets		100,000		443

We report our Collar 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 with the counterparty to the Collars. The agreement allows for multiple transaction payment netting and none of the netting arrangements involve collateral.

See Note 21, Other Comprehensive Loss for additional information regarding our cash flow hedges.

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15. Fair Value Measurement

Our financial instruments include cash and cash equivalents; investments; accounts receivable, net; accounts payable; notes payable; and financing lease obligations. Accounts receivable, net; and accounts payable 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. Certificates of deposit are valued at original cost plus accrued interest, which approximates fair value. 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 November 30, 2023 and February 28, 2023, the fair value of the cash and cash equivalents, restricted cash, certificates of deposit, 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
November 30, 2023
Asset-backed securities	$	162	$	47	$	—	$	209
February 28, 2023
Asset-backed securities	$	162	$	35	$	—	$	197

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:

	November 30, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Asset-backed securities	$	—	$	209	$	—	$	209
Total investments		—		209		—		209
Other assets:
Interest rate collar agreements		—		1,711		—		1,711
Total other assets		—		1,711		—		1,711
Total assets	$	—	$	1,920	$	—	$	1,920
Liabilities:
Forward currency contracts	$	—	$	127	$	—	$	127
Cash-settled restricted stock units		16		—		—		16
Tax receivable agreement liability		—		—		44,799		44,799
Warrant liability		7,900		—		2,930		10,830
Contingent consideration		—		—		14,188		14,188
Total liabilities	$	7,916	$	127	$	61,917	$	69,960

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	February 28, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Asset-backed securities	$	—	$	197	$	—	$	197
Total investments		—		197		—		197
Total assets	$	—	$	197	$	—	$	197
Liabilities:
Forward currency contracts	$	—	$	856	$	—	$	856
Cash-settled stock units		21		—		—		21
Tax receivable agreement liability		—		—		53,154		53,154
Warrant liability		16,920		—		12,696		29,616
Contingent consideration		—		—		29,548		29,548
Total liabilities	$	16,941	$	856	$	95,398	$	113,195

Cash-Settled Restricted Stock Units

Cash-settled restricted stock units (RSUs) form part of our compensation program. The fair value of these awards is determined using the closing stock price of our Class A Common Stock on the last day of each balance sheet date which is considered an observable quoted market price in active markets (Level 1).

Contingent Consideration

The following table provides a reconciliation of the beginning and ending balances of the contingent consideration using significant unobservable inputs (Level 3):

($ in thousands)	November 30, 2023			February 28, 2023
Beginning of period	$	29,548		$	45,568
Gain from fair value of contingent consideration		(15,360	)		(16,020	)
End of period	$	14,188		$	29,548

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:

($ in thousands)	November 30, 2023			February 28, 2023
Beginning of period	$	53,154		$	50,268
(Gain) loss from fair value of tax receivable agreement liability		(8,355	)		2,886
End of period	$	44,799		$	53,154

The change in the fair value of the tax receivable agreement liability is recorded in gain (loss) from 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:

($ in thousands)	November 30, 2023			February 28, 2023
Beginning of period	$	29,616		$	67,139
Gain from fair value of warrant liability		(18,786	)		(37,523	)
End of period	$	10,830		$	29,616

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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 daily market foreign currency rates, interest rate curves and quoted market prices for comparable instruments or model-driven valuations using observable market data or inputs corroborated by observable market data.

Our contingent consideration is valued using a Monte Carlo simulation model. The assumptions used in preparing this model include estimates such as volatility, contractual terms, discount rates, dividend yield and risk-free interest rates. This valuation model uses unobservable market input, and therefore the liability is 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 were 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.

There were no transfers of financial instruments between the levels of the fair value hierarchy during the three and nine months ended November 30, 2023 and 2022.

16. 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 November 30,				Nine Months Ended November 30,
($ in thousands)	2023		2022		2023		2022
Americas	$	133,018	$	139,468	$	401,842	$	410,100
Europe		19,404		20,120		58,678		59,049
Asia Pacific		5,075		5,305		15,585		16,801
Total revenue	$	157,497	$	164,893	$	476,105	$	485,950

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 84% and 83% during the three months ended November 30, 2023 and 2022, respectively, and 84% and 83% during the nine months ended November 30, 2023 and 2022. No other country represented more than 10% of total revenue during these periods.

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 November 30, 2023 and February 28, 2023, approximately $806.0 million and $779.6 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.

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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 $23.1 million and $25.5 million as of November 30, 2023 and February 28, 2023, 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 $179.1 million and $206.3 million as of November 30, 2023 and February 28, 2023, respectively. Revenue recognized during the three and nine months ended November 30, 2023, included in deferred revenue on the Condensed Consolidated Balance Sheets as of February 28, 2023, was $19.6 million and $156.3 million, respectively.

Sales Commissions

With the adoption of ASC 606 and ASC 340-40, Contracts with Customers, in March 2019, we began deferring and amortizing sales commissions that are incremental and directly related to obtaining client contracts. Amortization expense of $1.7 million and $1.0 million was recorded in sales and marketing expenses in the Condensed Consolidated Statements of Operations for the three months ended November 30, 2023 and 2022, respectively. Amortization expense of $4.5 million and $2.9 million was recorded in sales and marketing expenses for the nine months ended November 30, 2023 and 2022, respectively. Certain sales commissions that would have an amortization period of less than a year are expensed as incurred in sales and marketing expenses. As of November 30, 2023 and February 28, 2023, we had a total of $19.7 million and $16.0 million of capitalized sales commissions included in prepaid expenses and other current assets and other noncurrent assets in the Condensed Consolidated Balance Sheets, respectively.

17. 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, cancellation of lease obligations related to properties that were vacated and other cost-saving measures. Severance and exit costs included in acquisition-related expenses in the Condensed Consolidated Statements of Operations were as follows:

	Three Months Ended November 30,					Nine Months Ended November 30,
($ in thousands)	2023			2022		2023			2022
Severance	$	(9	)	$	534	$	350		$	4,224
Lease exits		—			81		(38	)		316
Total severance and exit costs	$	(9	)	$	615	$	312		$	4,540

Included in accounts payable and accrued liabilities as of November 30, 2023 and February 28, 2023 was a restructuring liability balance, primarily consisting of lease related obligations, of $0.1 million and $0.2 million, respectively, and a restructuring severance liability of $1.1 million and $0.9 million, respectively. 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:

($ in thousands)	November 30, 2023			February 28, 2023
Beginning of period	$	1,150		$	2,687
Payments		(3,679	)		(6,225	)
Impairment of right-of-use assets		—			(421	)
Disposition (1)		—			(162	)
Expenses		3,746			5,271
End of period	$	1,217		$	1,150

(1)Represents the severance and retention accrual that was written off as part of the subsidiary disposition in February 2023.

Accrued severance includes activity related to the pre- and post-acquisition related operational reviews (acquisition related severance) as well as various departmental cost cutting initiatives resulting in severance awards to specific individuals that are not under a specific Company program (non-acquisition related severance). The non-acquisition related severance payments are accrued in both accrued severance and accrued compensation. Total severance expense, including both acquisition and non-acquisition related severance payments, for the three months ended November 30, 2023 and 2022 was a $4.4 million and $1.0 million, respectively, and for the nine months ended November 30, 2023 and 2022 was $7.9 million and $5.7 million, respectively.

With the departure of our former Chief Operating Officer on September 27, 2023 and Chief Executive Officer on October 10, 2023, we accrued a severance payment of $0.9 million and $1.3 million, respectively. Both of these severance payments were paid during the third quarter of fiscal 2024.

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18. Warrants

As of November 30, 2023 and February 28, 2023, there were an aggregate of 29,079,872 warrants outstanding. Each warrant entitles its holders to purchase one share of Class A Common Stock at an exercise price of $11.50 per share. The warrants expire five years after the Closing Date, or earlier upon redemption or liquidation. The warrants are currently exercisable and redeemable 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 $10.8 million and $29.6 million as of November 30, 2023 and February 28, 2023, respectively. During the three months ended November 30, 2023 and 2022, a gain of $2.6 million and $16.2 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 nine months ended November 30, 2023 and 2022, a gain of $18.8 million and $36.8 million was recognized in gain (loss) from change in fair value of the warrant liability, respectively.

19. 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 November 30, 2023 and February 28, 2023, there were 304,564,709 and 302,582,007 shares of Class A Common Stock issued, respectively, and 304,388,055 and 302,405,353 shares of Class A Common Stock outstanding, respectively.

Class V Common Stock

We are authorized to issue 42,747,890 Class V common stock with a par value of $0.0001 per share. These shares have no economic value but entitle the holder to one vote per share. As of November 30, 2023 and February 28, 2023, there were 32,722,920 and 32,992,007 shares of Class V Common Stock issued and outstanding, respectively, and 10,024,970 and 9,755,883 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, 2023		302,405,353		32,992,007			94		3,372,184
Conversion of Common Units (1)		269,087		(269,087	)		—		—
Issuance of common stock pursuant to stock-based     awards (2)		408,881		—			—		—
Vesting of restricted awards, net of shares     withheld for taxes (3)		1,304,734		—			—		—
Balance, November 30, 2023		304,388,055		32,722,920			94		3,372,184

(1)Class A Common Stock issued for the conversion of Common Units settled in stock. 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)Issuance of Class A Common Stock associated with the restricted stock award grants.

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

See Note 28, Subsequent Events for information related to Common Units converted to Class A Common Stock after November 30, 2023.

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20. Noncontrolling Interest

Noncontrolling interest represents the portion of E2open Holdings that we control and consolidate but do not own. As of November 30, 2023 and February 28, 2023, the noncontrolling interest represents a 9.7% and 9.8% ownership in E2open Holdings, respectively. As part of the Business Combination, E2open Parent Holdings, Inc. became the owner of E2open Holdings along with the existing owners of E2open Holdings through Common Unit ownership. The existing owners of E2open Holdings are shown as noncontrolling interest on the Condensed Consolidated Balance Sheets and their portion of the net income (loss) of E2open Holdings is shown as net income (loss) attributable to noncontrolling interest on the Condensed Consolidated Statements of Operations.

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 Third Amended and Restated Limited Liability Company Agreement of E2open, LLC (Third Company 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 and nine months ended November 30, 2023, there were 269,087 Common Units converted into Class A Common Stock with a value of $0.8 million based off the 5-day VWAP. This activity resulted in a decrease to noncontrolling interests of $0.8 million during the three and nine months ended November 30, 2023.

During the three months ended November 30, 2022, 100,000 Common Units were converted into Class A Common Stock with a value of $0.6 million based off the 5-day VWAP. During the nine months ended November 30, 2022, 249,941 Common Units were converted into Class A Common Stock with a value of $1.8 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 nine months ended November 30, 2022. This activity resulted in a decrease to noncontrolling interests of $0.6 million and $3.2 million during the three and nine months ended November 30, 2022, respectively.

As of November 30, 2023 and February 28, 2023, there were a total of 32.7 million and 33.0 million Common Units held by participants of E2open Holdings.

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.

See Note 28, Subsequent Events for information related to Common Units converted after November 30, 2023.

21. Other Comprehensive Loss

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

($ in thousands)	Foreign Currency Translation Adjustment			Unrealized Holding (Losses) Gains on Foreign Exchange Forward Contracts			Unrealized Holding Gains on Interest Rate Collar Agreements		Total
Balance, February 28, 2023	$	(67,747	)	$	(856	)	$	—	$	(68,603	)
Other comprehensive gain		20,271			729			1,711		22,711
Other comprehensive gain		20,271			729			1,711		22,711
Balance, November 30, 2023	$	(47,476	)	$	(127	)	$	1,711	$	(45,892	)

There were no income taxes recorded to other comprehensive loss during the three or nine months ended November 30, 2023.

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The effect of amounts reclassified out of unrealized holding losses for foreign exchange forward contracts into net loss was as follows:

	Three Months Ended November 30,				Nine Months Ended November 30,
($ in thousands)	2023		2022		2023		2022
Reclassifications:
Cost of revenue	$	36	$	105	$	127	$	105
Research and development		35		94		119		94
Sales and marketing		2		3		6		3
General and administrative		15		48		53		48
Total	$	88	$	250	$	305	$	250

The effect of amounts reclassified out of unrealized gains for interest rate collars as an offset to interest expense was as follows:

	Three Months Ended			Nine Months Ended
($ in thousands)	November 30, 2023			November 30, 2023
Reclassifications:
$100 million notional interest rate collar	$	(208	)	$	(463	)
$200 million notional interest rate collar		(290	)		(596	)
Total	$	(498	)	$	(1,059	)

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

See Note 14, Financial Instruments for additional information related to our derivative instruments.

22. Earnings Per Share

Basic earnings per share is calculated as net (loss) income available to common stockholders divided by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share is computed by using the basic earnings per share plus any dilutive securities outstanding during the period using the if-converted method, except when the effect is anti-dilutive. The following is a reconciliation of the denominators of the basic and diluted per share computations for net (loss) income:

	Three Months Ended November 30,					Nine Months Ended November 30,
(in thousands, except per share data)	2023			2022		2023			2022
Net loss per share:
Numerator - basic:
Net (loss) income per share:	$	(740,031	)	$	5,503	$	(1,139,544	)	$	(416,703	)
Less: Net (loss) income attributable to noncontrolling     interests		(72,475	)		698		(111,721	)		(41,464	)
Net (loss) income attributable to E2open Parent     Holdings, Inc. - basic	$	(667,556	)	$	4,805	$	(1,027,823	)	$	(375,239	)
Numerator - diluted:
Net (loss) income attributable to E2open Parent     Holdings, Inc. - basic	$	(667,556	)	$	4,805	$	(1,027,823	)	$	(375,239	)
Net (loss) income attributable to E2open Parent     Holdings, Inc. - diluted	$	(667,556	)	$	4,805	$	(1,027,823	)	$	(375,239	)
Denominator - basic:
Weighted average shares outstanding - basic		303,848			302,201		303,188			301,822
Net (loss) income per share - basic	$	(2.20	)	$	0.02	$	(3.39	)	$	(1.24	)
Denominator - diluted:
Weighted average shares outstanding - basic		303,848			302,201		303,188			301,822
Weighted average effect of dilutive securities:
Time based restricted stock		—			158		—			—
Weighted average shares outstanding - diluted		303,848			302,359		303,188			301,822
Diluted net (loss) income per common share	$	(2.20	)	$	0.02	$	(3.39	)	$	(1.24	)

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Potential common shares are shares that would be issued upon exercise or conversion of shares under our share-based compensation plans and upon exercise of warrants that 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 November 30,				Nine Months Ended November 30,
	2023		2022		2023		2022
Series B-1 common stock		94		94		94		94
Series B-2 common stock		3,372,184		3,372,184		3,372,184		3,372,184
Restricted common units Series 2		2,627,724		2,627,724		2,627,724		2,627,724
Warrants		29,079,872		29,079,872		29,079,872		29,079,872
Common Units		32,879,559		33,126,073		32,954,797		33,350,756
Performance-based options		1,334,919		4,832,802		1,215,252		3,986,158
Time-based options		1,038,513		—		901,246		—
Performance-based restricted stock units		3,837,349		2,101,221		3,514,740		2,059,595
Time-based restricted stock units		8,449,869		2,303,641		9,778,141		2,404,272
Time-based restricted stock awards		187,824		—		408,881		—
Units/Shares excluded from the dilution     computation		82,807,907		77,443,611		83,852,931		76,880,655

23. Share-Based Compensation

2021 Incentive Plan

The E2open Parent Holdings, Inc. 2021 Omnibus Incentive Plan (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 and 2023, an additional 4,849,684 shares and 7,304,646 shares were reserved for issuance under the "evergreen " provision, respectively. 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, except under limited conditions.

Our board of directors, or its expressly approved delegees, have approved the grant of options, RSUs and restricted stock awards (RSAs) under the 2021 Incentive Plan.

Options

Options are either performance-based or time-based. The fiscal year 2022 options were performance-based and measured based on obtaining an organic growth target over a one-year period. The fiscal year 2023 options were performance-based and measured based on obtaining organic growth, adjusted EBITDA and net booking targets over a one-year period. A quarter of the options vest at the end of the performance period and the remaining options will vest equally over the following three years. The fiscal year 2024 options are time-based with one-third of the options vesting at the end of the first year with the remaining options vesting ratably each quarter over the remaining two-years.

Our executive officers and senior management are granted these performance-based and time-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. The performance target for the options granted in May 2022 was finalized in April 2023 below 100% and adjusted accordingly.

As of November 30, 2023, there were 1,215,252 unvested performance-based options and 901,246 unvested time-based options.

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RSUs

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. The fiscal year 2023 performance-based RSUs were measured based on obtaining an organic growth, adjusted EBITDA and net bookings target over a one-year period. The fiscal year 2024 performance-based RSUs are measured based on obtaining an organic subscription revenue growth, constant currency adjusted EBITDA and net bookings target over a one-year period. A quarter of the RSUs will vest at the end of the performance period and the remaining RSUs will vest 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 performance target for the performance-based RSUs granted in May 2022 was finalized in April 2023 below 100% and adjusted accordingly. The time-based RSUs for executive officers, senior management and employees granted during fiscal years 2022 and 2023 vest ratably over a three-year period. Beginning in fiscal year 2024, the time-based RSUs for executive officers, senior management and employees will vest one-third at the end of the first year and then ratably each quarter over the remaining two years. The time-based RSUs for non-employee directors of our board of directors have a one-year vesting period.

During November 2023, executive officers and senior management received retention time-based RSUs which have an eighteen-month vesting period. The total retention awards granted during November 2023 were 2,052,680. See Note 28, Subsequent Events for information regarding additional retention awards granted in December 2023.

As of November 30, 2023, there were 3,514,740 performance-based RSUs, 9,778,141 time-based RSUs and 408,881 RSAs that were unvested and expected to vest.

During fiscal 2023 and 2024, our board of directors approved a company-wide share-based compensation program under our 2021 Incentive Plan where all eligible employees received annual stock awards as part of their annual compensation package. The fiscal 2023 grant was awarded on October 1, 2022 and the fiscal 2024 grant was awarded on July 1, 2023. Future awards under this program are at the discretion of the board of directors and are not guaranteed for any fiscal year.

For employees based in China, they are awarded cash-settled RSUs which will vest ratably over a three-year period. The cash-settled RSUs must be settled in cash and are accounted for as liability-type awards. The fair value of these cash-settled RSUs equals the value of our Class A Common Stock on the date of grant and is remeasured at the end of each reporting period at fair value. The change in fair value will be recorded in share-based compensation expense in the Condensed Consolidated Statements of Operations. The liability for the cash-settled RSUs was negligible as of November 30, 2023 and is included in accounts payable and accrued liabilities in the Condensed Consolidated Balance Sheets. As of November 30, 2023, there were 37,479 unvested cash-settled RSUs with a total intrinsic value of $0.1 million.

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. All of the options expired unexercised as of August 31, 2023.

Restricted Stock Awards

RSAs are time-based and granted to participants with the associated Class A Common Stock issued on the day of grant. The Class A Common Stock are issued with restrictions and voting rights. When the applicable vesting terms have been met, the restrictions are removed from the Class A Common Stock.

Mr. Andrew Appel joined E2open as interim Chief Executive Officer on October 10, 2023. As part of his compensation, he received an initial RSA grant valued at $685,000, or 275,101 shares, under our 2021 Incentive Plan which will vest after six months of issuance. If Mr. Appel's term continues past the initial six-month period, he will receive an additional monthly RSA grant valued at $100,000 that will vest after one month of issuance.

Mr. Appel's Chief of Staff was awarded an RSA grant in November 2023 for 133,780 shares under our 2021 Incentive Plan which will vest after five months of issuance.

As of November 30, 2023, there were 9,290,911 shares of Class A Common Stock available for grant under the 2021 Incentive Plan.

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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, 2023		4,833		$	8.42		8.5
Granted		1,232			4.65
Forfeited/Expired		(3,949	)		7.82
Balance, November 30, 2023		2,116		$	7.36		6.8
Vested and exercisable as of November 30, 2023		807		$	9.28		3.6

	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		(966	)		9.85
Balance, November 30, 2022		4,833		$	8.42		8.7
Vested and exercisable as of November 30, 2022		573		$	9.82		5.2

As of November 30, 2023, there was $2.6 million of unrecognized compensation cost related to unvested options. The aggregate intrinsic value of the outstanding, vested and exercisable stock option awards was zero as of November 30, 2023 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 and RSAs 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, 2023		6,475		$	8.44		2.4
Granted		12,235			5.26
Added by performance factor		39			9.02
Released		(1,968	)		8.36
Canceled and forfeited		(3,079	)		6.83
Balance, November 30, 2023		13,702		$	5.77		2.1

	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		5,645			7.45
Added by performance factor		300			12.87
Released		(870	)		12.12
Canceled and forfeited		(560	)		10.00
Balance, November 30, 2022		6,618		$	8.46		2.6

As of November 30, 2023, there was $53.2 million of unrecognized compensation cost related to unvested RSUs and RSAs. The aggregate intrinsic value of the RSUs and RSAs was $49.9 million as of November 30, 2023 which is the outstanding RSUs and RSAs valued at the closing price of our Class A Common Stock on November 30, 2023.

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

	Number of Units (in thousands)			Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Recognition Period (in years)
Balance, February 28, 2023		25		$	6.07		2.6
Granted		24			5.60
Released		(8	)		6.07
Canceled and forfeited		(4	)		5.96
Balance, November 30, 2023		37		$	5.78		2.3

	Number of Units (in thousands)		Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Recognition Period (in years)
Balance, February 28, 2022		—	$	—		—
Granted		25		6.07
Balance, November 30, 2022		25	$	6.07		2.8

As of November 30, 2023, there was $0.1 million of unrecognized compensation cost related to unvested cash-settled RSUs. The aggregate intrinsic value of the cash-settled RSUs was $0.1 million as of November 30, 2023 which is the outstanding cash-settled RSUs valued at the closing price of our Class A Common Stock on November 30, 2023.

As previously disclosed in our August 31, 2023 Form 10-Q in Item 5., Other Information, our former Chief Operating Officer entered into a Release and Non-Competition Agreement (Separation Agreement) in which he will provide transition services until December 31, 2023 (Transition Period). As a result of his departure, his options, time-based RSUs and performance-based RSUs will be prorated as of December 31, 2023. The remaining unvested awards will be accelerated at 50%. This will result in 189,039 options and 187,325 time-based and performance-based RSUs vesting as of December 31, 2023. The 2024 fiscal year performance-based RSUs will remain unvested until the performance metrics are determined in early fiscal 2025, at which point this award will accelerate and vest at 50%.

In accordance with our executive plan, our former Chief Executive Officer's options, time-based RSUs and performance-based RSUs were prorated as of his departure date, October 11, 2023, resulting in 134,920 options and 147,606 time-based and performance-based RSUs vesting. The 2024 fiscal year performance based RSUs will remain unvested until the performance metrics are determined in early fiscal 2025, at which point this award will accelerate and vest at 25%.

The estimated grant-date fair values of the options granted or modified during the nine months ended November 30, 2023 and 2022 were calculated using the Black-Scholes option-pricing valuation model, based on the following assumptions:

	Nine Months Ended November 30,
	2023	2022
Expected term (in years)	0.68 - 6.25	6.25
Expected volatility	48.97% - 56.84%	44.17%
Risk-free interest rate	3.38% - 5.30%	2.91%
Expected dividend yield	0%	0%

The assumptions and estimates were as follows:

Expected Term: The expected term represents the weighted-average period the share-based awards are expected to remain outstanding and is calculated using the simplified method, as we do not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. The simplified method calculates the expected term as the midpoint between the vesting date and the contractual expiration date of the option.

Expected Volatility: The expected stock price volatility assumption was determined based on the historical volatility of the Class A Common Stock.

Risk-Free Interest Rate: The risk-free rate assumption was based on the U.S. Treasury instruments whose term was consistent with the option's expected term.

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Expected Dividend Yield: We do not currently declare or pay dividends on our common stock and do not expect to do so for the foreseeable future.

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

	Three Months Ended November 30,				Nine Months Ended November 30,
($ in thousands)	2023		2022		2023		2022
Cost of revenue	$	1,304	$	545	$	3,059	$	856
Research and development		1,665		938		4,177		2,181
Sales and marketing		1,556		901		3,444		2,560
General and administrative		2,316		2,413		8,048		7,542
Total share-based compensation	$	6,841	$	4,797	$	18,728	$	13,139

24. Leases

We account for leases in accordance with ASC 842, Leases, which requires lessees to recognize lease liabilities and right-of-use (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.

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 expenses in the Condensed Consolidated Statements of Operations.

Real Estate Leases

We lease our primary office spaces 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 early cancellation with proper notification. Additionally, we have five subleases of our office leases as of November 30, 2023.

Several of the operating lease agreements require us to provide security deposits. As of November 30, 2023, and February 28, 2023, lease deposits were $3.5 million and $4.7 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 three and nine months ended November 30, 2023, we incurred $0.1 million and $0.6 million impairments on our operating lease ROU assets and leasehold improvements, respectively, due to vacating four locations with the intent to sublease them. During the three and nine months ended November 30, 2022, we incurred a $1.8 million and $4.1 million impairment, respectively, on our operating lease ROU assets and leasehold improvements due to vacating three and seven locations, respectively, with the intent to sublease them. The impairments were recorded in general and administrative expenses in the Condensed Consolidated Statements of Operations.

During the second quarter of fiscal 2023, we terminated an operating lease early with a lease expiration date of February 2026. We paid an early termination fee of $0.2 million and recognized a $0.2 million gain on the write-off of the remaining ROU asset and liability. An ROU impairment was taken on this lease during August 2022.

Vehicle Leases

We lease vehicles under non-cancelable operating lease arrangements which have various expiration dates through May 2027. We do not have the right to purchase the vehicles at the end of the lease term.

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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 November 2028. 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 present the amounts and classifications of our estimated ROU assets, net and lease liabilities:

($ in thousands)	Balance Sheet Location	November 30, 2023		February 28, 2023
Operating lease right-of-use assets	Operating lease right-of-use assets	$	21,580	$	18,758
Finance lease right-of-use asset	Property and equipment, net		4,175		3,358
Total right-of-use assets		$	25,755	$	22,116

($ in thousands)	Balance Sheet Location	November 30, 2023		February 28, 2023
Operating lease liability - current	Current portion of operating lease obligations	$	7,317	$	7,622
Operating lease liability	Operating lease obligations		17,959		15,379
Finance lease liability - current	Current portion of finance lease obligations		1,120		2,582
Finance lease liability	Finance lease obligations		3,188		1,049
Total lease liabilities		$	29,584	$	26,632

Lease Cost and Cash Flows

The following table summarizes our total lease cost:

	Three Months Ended November 30,						Nine Months Ended November 30,
($ in thousands)	2023			2022			2023			2022
Finance lease cost:
Amortization of right-of-use asset	$	135		$	508		$	1,319		$	1,686
Interest on lease liability		23			35			124			161
Finance lease cost		158			543			1,443			1,847
Operating lease cost:
Operating lease cost		1,722			2,239			5,452			5,505
Variable lease cost		823			510			2,674			3,810
Sublease income		(209	)		(46	)		(440	)		(482	)
Operating net lease cost		2,336			2,703			7,686			8,833
Total net lease cost	$	2,494		$	3,246		$	9,129		$	10,680

Short-term lease expense was immaterial for the three and nine months ended November 30, 2023. There was no short-term lease expense for the three and nine months ended November 30, 2022.

Supplemental cash flow information related to leases was as follows:

	Nine Months Ended November 30,
($ in thousands)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	6,378	$	7,365

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

	Nine Months Ended November 30,
	2023			2022
Weighted-average remaining lease term (in years):
Finance lease		4.14			0.69
Operating lease		3.98			3.77
Weighted-average discount rate:
Finance lease		7.66	%		9.20	%
Operating lease		6.95	%		5.43	%

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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 November 30, 2023:

($ in thousands)	Operating Leases			Finance Leases
December 2023 - February 2024	$	2,315		$	391
2025		8,483			1,357
2026		6,647			1,256
2027		5,462			748
2028		3,299			748
Thereafter		2,927			561
Total		29,133			5,061
Less: Present value discount		(3,857	)		(753	)
Lease liabilities	$	25,276		$	4,308

25. 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 $5.4 million, or 0.7%, for the three months ended November 30, 2023 compared to $7.9 million, or 331.8%, for the three months ended November 30, 2022. Our provision for income taxes for the nine months ended November 30, 2023 was a benefit of $73.8 million, or 6.1%, compared to $130.0 million, or 23.8%, for the nine months ended November 30, 2022.

The loss before income taxes of $745.4 million and $1,213.4 million resulted in a $5.4 million and $73.8 million income tax benefit for the three and nine months ended November 30, 2023, respectively. During the three and nine months ended November 30, 2022, the loss before income tax was $2.4 million and $546.7 million resulting in a $7.9 million and $130.0 million income tax benefit, respectively. The discrete impact of the goodwill impairment taken in the first and third quarters of fiscal 2024 resulted in a $3.7 million and $67.6 million income tax benefit, net of a valuation allowance of $154.5 million and $179.9 million for the three and nine months ended November 30, 2023, respectively. The remainder of the increase in the tax benefit was due to 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 offset by changes in book losses in certain jurisdictions for which no benefit can be recognized.

As of November 30, 2023 and February 28, 2023, 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 November 30, 2023 and February 28, 2023, 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, 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 is effective for taxable years beginning after December 31, 2022 and the excise tax applies to stock repurchases after December 31, 2022. The alternative minimum tax would not be applicable in our next fiscal year as it is based on a three-year average annual adjusted financial statement income in excess of $1 billion. We continue to evaluate any impact related to the excise tax on net stock repurchases based on our relative activity.

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26. Commitments and Contingencies

In 2014, Kewill Inc. (Kewill) (a predecessor of BluJay) entered into a software licensing and service contract with a customer that resulted in a dispute over Kewill’s performance under the agreement. In June 2020, prior to our acquisition of BluJay, the customer filed suit. BluJay and its external counsel considered the claims meritless and intended to file a counter claim for delinquent uncollected receivables. At the time of the BluJay Acquisition in September 2021, an allowance for credit losses was recorded against the uncollected receivables from this customer. No further accrual was established for this litigation at the time of the acquisition or in subsequent periods through the first quarter of fiscal 2024, as in our judgement, which was based on the advice of external legal counsel, the claims were without merit. Any loss beyond the uncollected receivables was considered remote and the maximum exposure was believed to be immaterial. In February 2022, consistent with the related contractual terms, the case moved to binding arbitration. Upon conclusion of the arbitration proceedings in August 2023, the arbitrator ruled against BluJay. On September 14, 2023, the parties agreed to a settlement for $17.8 million which resolved the matter and released us from all alleged claims. The settlement was paid on September 20, 2023.

The settlement is not an admission of liability or wrongdoing by us or our predecessors, nor does it validate the alleged claims.

We accrued $17.8 million for the settlement in the second quarter of fiscal 2024 as part of general and administrative expenses on the Condensed Consolidated Statement of Operations. The $17.8 million was paid during the third quarter of fiscal 2024.

From time to time, we have exposure and are subject to contingencies that arise in the ordinary course of business for a variety of claims. 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 other such contingencies will have a material adverse effect upon our Condensed Consolidated Balance Sheets, Statements of Operations or Statements of Cash Flows.

27. Supplemental Cash Flow Information

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

	Nine Months Ended November 30,
(In thousands)	2023		2022
Supplemental cash flow information - Cash paid for:
Interest	$	76,748	$	29,325
Income taxes		6,232		7,669
Non-cash investing and financing activities:
Capital expenditures included in accounts payable and accrued liabilities		1,053		263
Right-of-use assets obtained in exchange for operating lease obligations		8,708		2,559
Shares withheld for taxes on vesting of restricted stock		3,059		1,593
Conversion of Common Units to Class A Common Stock		836		1,809

28. Subsequent Events

As part of the retention effort initiated in November 2023, an additional 434,784 retention time-based RSUs were granted to executive officers and senior management in December 2023. These retention awards also had an eighteen-month vesting period.

In January 2024, there were 1,497,316 Common Units converted into Class A Common Stock with a value of $6.7 million based off the 5-day VWAP which decrease noncontrolling interests by $6.7 million and increased our outstanding Class A Common Stock.

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 2023 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.

36

Overview

We are a leading connected supply chain software platform that enables the world's largest companies to transform the way they make, move and sell goods and services. Our SaaS 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. With the broadest cloud-native global platform purpose-built for the modern supply chains, we connect manufacturing, logistics, channel and distributing partners as one multi-enterprise network. Our SaaS platform anticipates disruptions and opportunities to help companies improve efficiency, reduce waste and operate sustainably. Given the mission-critical nature of our solutions, we maintain long-term relationships with our clients, which is reflected by our 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.

Recent Events

During the first and third quarters of fiscal 2024, the market price of our Class A Common Stock and market capitalization declined significantly. This decline resulted in a triggering event, as such an interim goodwill impairment assessment was performed. The fair value of E2open was calculated using an equally weighted combination of three different methods: discounted cash flow method, guideline public company method and guideline transaction method. The discounted cash flow method was based on the present value of estimated future cash flows which were based on management's estimates of projected net sales, net operating margins and terminal growth rates, taking into consideration market and industry conditions. Under the guideline public company method, the fair value was based on current and forward-looking earnings multiples using management's estimates of projected net sales and adjusted EBITDA margins with consideration of market premiums. Under the guideline transaction method, the fair value was based on pricing multiples derived from recently sold companies with similar characteristics to ours taking into consideration management's estimates of projected net sales and net operating income margins.

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, during the three and nine months ended November 30, 2023, we recognized an impairment charge of $687.7 million and $1,097.7 million to goodwill, respectively. See Note 6, Goodwill to the Notes to the Unaudited Condensed Consolidated Financial Statements.

The significant decline in the market price of our Class A Common Stock and market capitalization was also a triggering event which resulted in the performance of an interim indefinite-lived intangible asset impairment assessment. The fair value of the indefinite-lived intangible asset was calculated using the relief from royalty payments method which was based on management's estimates of projected net sales and terminal growth rates, taking into consideration market and industry conditions. The interim assessment indicated that the fair value of E2open's indefinite-lived intangible asset was less than its carrying amount; therefore, during the three and nine months ended November 30, 2023, we recognized an impairment charge of $30.0 million and $34.0 million to intangible assets, net, respectively, for the indefinite-lived trademark / trade name which is recorded in general and administrative expenses on the Condensed Consolidated Statements of Operations. See Note 7, Intangible Assets, Net to the Notes to the Unaudited Condensed Consolidated Financial Statements.

In 2014, Kewill (a predecessor of BluJay) entered into a software licensing and service contract with a customer that resulted in a dispute over Kewill’s performance under the agreement. In June 2020, prior to our acquisition of BluJay, the customer filed suit. BluJay and its external counsel considered the claims meritless and intended to file a counter claim for delinquent uncollected receivables. At the time of the BluJay Acquisition in September 2021, an allowance for credit losses was recorded against the uncollected receivables from this customer. No further accrual was established for this litigation at the time of the acquisition or in subsequent periods through the first quarter of fiscal 2024, as in our judgement, which was based on the advice of external legal counsel, the claims were without merit. Any loss beyond the uncollected receivables was considered remote and the maximum exposure was believed to be immaterial. In February 2022, consistent with the related contractual terms, the case moved to binding arbitration. Upon conclusion of the arbitration proceedings in August 2023, the arbitrator ruled against BluJay. On September 14, 2023, the parties agreed to a settlement for $17.8 million which resolved the matter and released us from all alleged claims. The settlement was paid on September 20, 2023.

The settlement is not an admission of liability or wrongdoing by us or our predecessors, nor does it validate the alleged claims.

We accrued $17.8 million for the settlement in the second quarter of fiscal 2024 as part of general and administrative expenses on the Condensed Consolidated Statement of Operations.

37

Results of Operations

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

	Three Months Ended November 30,						Nine Months Ended November 30,
($ in thousands)	2023			2022			2023			2022
Revenue	$	157,497		$	164,893		$	476,105		$	485,950
Cost of revenue		(78,921	)		(80,750	)		(238,945	)		(242,682	)
Total gross profit		78,576			84,143			237,160			243,268
Operating Expenses
Research and development		24,937			24,939			75,748			73,088
Sales and marketing		22,583			20,448			63,692			67,348
General and administrative		24,739			23,073			85,414			66,774
Acquisition-related expenses		9			1,969			416			14,313
Amortization of acquired intangible assets		20,014			19,965			60,135			62,523
Goodwill impairment		687,700			—			1,097,741			514,816
Intangible asset impairment		30,000			—			34,000			—
Total operating expenses		809,982			90,394			1,417,146			798,862
Loss from operations		(731,406	)		(6,251	)		(1,179,986	)		(555,594	)
Interest and other expense, net		(24,643	)		(21,270	)		(75,886	)		(54,732	)
Gain from change in tax receivable agreement liability		2,888			2,697			8,355			9,089
Gain from change in fair value of warrant liability		2,617			16,150			18,786			36,764
Gain from change in fair value of contingent consideration		5,100			6,300			15,360			17,760
Total other (expense) income		(14,038	)		3,877			(33,385	)		8,881
Loss before income tax provision		(745,444	)		(2,374	)		(1,213,371	)		(546,713	)
Income tax benefit		5,413			7,877			73,827			130,010
Net (loss) income		(740,031	)		5,503			(1,139,544	)		(416,703	)
Less: Net (loss) income attributable to noncontrolling     interest		(72,475	)		698			(111,721	)		(41,464	)
Net (loss) income attributable to E2open Parent Holdings,     Inc.	$	(667,556	)	$	4,805		$	(1,027,823	)	$	(375,239	)
Net (loss) income attributable to E2open Parent Holdings,     Inc. Class A common stockholders per share:
Basic	$	(2.20	)	$	0.02		$	(3.39	)	$	(1.24	)
Diluted	$	(2.20	)	$	0.02		$	(3.39	)	$	(1.24	)
Weighted-average common shares outstanding:
Basic		303,848			302,201			303,188			301,822
Diluted		303,848			302,359			303,188			301,822

Three Months Ended November 30, 2023 compared to Three Months Ended November 30, 2022

Revenue

	Three Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Revenue:
Subscriptions	$	132,800		$	134,884		$	(2,084	)		-2	%
Professional services and other		24,697			30,009			(5,312	)		-18	%
Total revenue	$	157,497		$	164,893		$	(7,396	)		-4	%
Percentage of revenue:
Subscriptions		84	%		82	%
Professional services and other		16	%		18	%
Total		100	%		100	%

Subscriptions revenue was $132.8 million for the three months ended November 30, 2023, a $2.1 million, or 2%, decrease compared to subscriptions revenue of $134.9 million for the three months ended November 30, 2022. The decrease in subscriptions revenue was primarily due to a slower growth rate during fiscal 2024 due to lower than anticipated new bookings, lower variable delivery fees, higher than expected churn and macroeconomic impacts primarily in the technology, freight and transportation sectors.

38

Professional services and other revenue were $24.7 million for the three months ended November 30, 2023, a $5.3 million, or 18%, decrease compared to $30.0 million for the three months ended November 30, 2022. The decrease in professional services and other revenue was due to macroeconomic impacts primarily in the technology, freight and transportation sectors, a decline in perpetual license fees and lower than anticipated order volume.

Our subscriptions revenue as a percentage of total revenue increased to 84% for the third quarter of fiscal 2024 compared to 82% for the third quarter of fiscal 2023. This increase is primarily the decline in professional services revenue. Our professional services and other revenue as a percentage of total revenue decreased to 16% for the third quarter of fiscal 2024 compared to 18% for the third quarter of fiscal 2023 as professional services and other revenue declined.

Cost of Revenue, Gross Profit and Gross Margin

	Three Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Cost of revenue:
Subscriptions	$	36,689		$	35,931		$	758			2	%
Professional services and other		17,642			20,417			(2,775	)		-14	%
Amortization of acquired intangible assets		24,590			24,402			188			1	%
Total cost of revenue	$	78,921		$	80,750		$	(1,829	)		-2	%
Gross profit:
Subscriptions	$	71,521		$	74,551		$	(3,030	)		-4	%
Professional services and other		7,055			9,592			(2,537	)		-26	%
Total gross profit	$	78,576		$	84,143		$	(5,567	)		-7	%
Gross margin:
Subscriptions		54	%		55	%
Professional services and other		29	%		32	%
Total gross margin		50	%		51	%

Cost of subscriptions was $36.7 million for the three months ended November 30, 2023, a $0.8 million, or 2%, increase compared to $35.9 million for the three months ended November 30, 2022. This increase was primarily driven by a $2.0 million increase in personnel costs partially offset by a $1.7 million decrease in software and hosting costs when compared to the prior year.

Cost of professional services and other revenue was $17.6 million for the three months ended November 30, 2023, a $2.8 million, or 14%, decrease compared to $20.4 million for the three months ended November 30, 2022. The decrease was mainly due to a $2.9 million lower spend for consulting services primarily related to our investment in strategic system integrator partnerships when compared to the prior year.

Amortization of acquired intangible assets was $24.6 million for the three months ended November 30, 2023, a $0.2 million, or 1%, increase compared to $24.4 million for the three months ended November 30, 2022.

Our subscriptions gross margin decreased slightly to 54% in the third quarter of fiscal 2024 compared to 55% in the third quarter of fiscal 2023.

Our professional services gross margin decreased in the third quarter of fiscal 2024 to 29% compared to 32% in the third quarter of fiscal 2023 primarily driven by our lower revenue in the third quarter of fiscal 2024.

Research and Development

	Three Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Research and development	$	24,937		$	24,939		$	(2	)		0	%
Percentage of revenue		16	%		15	%

Research and development expenses were $24.9 million for the three months ended November 30, 2023 and 2022, respectively. A $1.1 million decrease in personnel costs was partially offset by a $1.1 million increase in depreciation expenses as compared to the prior year period.

39

Sales and Marketing

	Three Months Ended November 30,
($ in thousands)	2023			2022			$ Change		% Change
Sales and marketing	$	22,583		$	20,448		$	2,135		10	%
Percentage of revenue		14	%		12	%

Sales and marketing expenses were $22.6 million for the three months ended November 30, 2023, a $2.1 million, or 10%, increase compared to $20.4 million in the prior year. The increase was primarily driven by $1.3 million of higher expense for allowance for credit losses in fiscal 2024 compared to fiscal 2023.

General and Administrative

	Three Months Ended November 30,
($ in thousands)	2023			2022			$ Change		% Change
General and administrative	$	24,739		$	23,073		$	1,666		7	%
Percentage of revenue		16	%		14	%

General and administrative expenses were $24.7 million for the three months ended November 30, 2023, a $1.7 million, or 7%, increase compared to $23.1 million in the prior year. The increase was mainly a result of $2.2 million of higher consulting services, partially offset by $1.7 million of lower ROU asset impairments during the third quarter of fiscal 2024 as compared to the prior year.

Other Operating Expenses

	Three Months Ended November 30,
($ in thousands)	2023		2022		$ Change			% Change
Acquisition and other related expenses	$	9	$	1,969	$	(1,960	)		-100	%
Amortization of acquired intangible assets		20,014		19,965		49			0	%
Total other operating expenses	$	20,023	$	21,934	$	(1,911	)		-9	%

Acquisition and other related expenses were negligible for the three months ended November 30, 2023, compared to $2.0 million for the three months ended November 30, 2022. The decrease was mainly related to legal and consulting expenses associated with the Logistyx Acquisition in fiscal 2023.

Amortization of acquired intangible assets was consistent between quarters at $20.0 million for the three months ended November 30, 2023 and 2022, respectively.

Goodwill Impairment

During the third quarter of fiscal 2024, 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 $687.7 million impairment charge. We did not have an impairment charge in the third quarter of fiscal 2023.

Intangible Asset Impairment

The decline in our stock price and market capitalization was also a triggering event which resulted in an interim indefinite-lived intangible asset impairment assessment. The result of the impairment assessment was the realization of a $30.0 million impairment charge. We did not have an impairment charge in the third quarter of fiscal 2023.

40

Interest and Other Expense, Net

	Three Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Interest and other expense, net	$	(24,643	)	$	(21,270	)	$	(3,373	)		16	%

Interest and other expense, net was $24.6 million for the three months ended November 30, 2023, a $3.4 million, or 16%, increase compared to $21.3 million in the prior year. The increase was driven by higher interest rates in fiscal 2024.

Gain from Change in Tax Receivable Agreement

	Three Months Ended November 30,
($ in thousands)	2023		2022		$ Change		% Change
Gain from change in tax receivable agreement     liability	$	2,888	$	2,697	$	191		7	%

During the three months ended November 30, 2023, we recorded a gain of $2.9 million related to the change in the fair value of the tax receivable agreement liability, including interest, compared to a gain of $2.7 million during the three months ended November 30, 2022. We have 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 gain (loss) from change in tax receivable agreement liability in the Unaudited Condensed Consolidated Statements of Operations in the period in which the change 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 November 30, 2023 and 2022, the Tax Receivable Agreement applicable to this guidance increased by a negligible amount and $0.4 million, respectively.

Gain from Change in Fair Value of Warrant Liability

	Three Months Ended November 30,
($ in thousands)	2023		2022		$ Change			% Change
Gain from change in fair value of warrant     liability	$	2,617	$	16,150	$	(13,533	)		-84	%

We recorded a gain of $2.6 million during the three months ended November 30, 2023, a $13.5 million decrease compared to a gain of $16.2 million in the prior year for the change in fair value on the revaluation of our warrant liability associated with our warrants. We are required to revalue the warrants at the end of each reporting period and reflect in the Unaudited 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 from Change in Fair Value of Contingent Consideration

	Three Months Ended November 30,
($ in thousands)	2023		2022		$ Change			% Change
Gain from change in fair value of     contingent consideration	$	5,100	$	6,300	$	(1,200	)		-19	%

We recorded a gain of $5.1 million during the three months ended November 30, 2023, a $1.2 million, or 19%, decrease compared to a gain of $6.3 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 Unaudited 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.

41

Provision for Income Taxes

	Three Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Loss before income taxes	$	(745,444	)	$	(2,374	)	$	(743,070	)	nm
Income tax benefit		5,413			7,877			(2,464	)		-31	%

Loss before income taxes was $745.4 million for the three months ended November 30, 2023, a $743.1 million decrease compared to $2.4 million for the three months ended November 30, 2022. The increase in the loss was primarily related to the $687.7 million impairment on goodwill and $30.0 million indefinite-lived intangible asset charge in the third quarter of fiscal 2024. Contributing to the increased loss was the $13.5 million decrease in the gain associated with the change in the fair value of the warrant liability, $1.2 million decrease 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, $17.8 million expense for the unfavorable arbitration ruling and $3.4 million of higher interest expense when compared to the prior year. Partially offsetting these increases was a $2.0 million reduction in acquisition and other related expenses due to the Logistyx Acquisition in March 2022.

Income tax benefit was $5.4 million, or 0.7%, for the three months ended November 30, 2023 compared to an income tax benefit of $7.9 million, or 331.8%, for the three months ended November 30, 2022. The change in our effective tax rate between periods was primarily due to the goodwill and indefinite-lived intangible impairment charges and increases in valuation allowances in jurisdictions within which certain deferred tax assets are not being benefited as well as 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.

Nine Months Ended November 30, 2023 compared to Nine Months Ended November 30, 2022

Revenue

	Nine Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Revenue:
Subscriptions	$	402,437		$	396,052		$	6,385			2	%
Professional services and other		73,668			89,898			(16,230	)		-18	%
Total revenue	$	476,105		$	485,950		$	(9,845	)		-2	%
Percentage of revenue:
Subscriptions		85	%		82	%
Professional services and other		15	%		18	%
Total		100	%		100	%

Subscriptions revenue was $402.4 million for the nine months ended November 30, 2023, a $6.4 million, or 2%, increase compared to subscriptions revenue of $396.1 million for the nine months ended November 30, 2022. The increase in subscriptions revenue was primarily due to new organic subscription sales predominantly driven by increases in products utilized across our current client portfolio. Compared to our double-digit historical growth rate, our growth rate has slowed during fiscal 2024 due to lower than anticipated new bookings, lower variable delivery fees, higher than expected churn and macroeconomic impacts primarily in the technology, freight and transportation sectors.

Professional services and other revenue were $73.7 million for the nine months ended November 30, 2023, a $16.2 million, or 18%, decrease compared to $89.9 million for the nine months ended November 30, 2022. The decrease in professional services and other revenue was due to macroeconomic impacts primarily in the technology, freight and transportation sectors, a decline in perpetual license fees and lower than anticipated order volume.

Our subscriptions revenue as a percentage of total revenue increased to 85% for the nine months of fiscal 2024 compared to 82% for the nine months of fiscal 2023. This increase is primarily a result of a decline in professional services revenue. Our professional services and other revenue as a percentage of total revenue decreased to 15% for the nine months of fiscal 2024 compared to 18% for the nine months of fiscal 2023 as professional services and other revenue declined.

42

Cost of Revenue, Gross Profit and Gross Margin

	Nine Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Cost of revenue:
Subscriptions	$	110,013		$	105,367		$	4,646			4	%
Professional services and other		55,014			63,446			(8,432	)		-13	%
Amortization of acquired intangible assets		73,918			73,869			49			0	%
Total cost of revenue	$	238,945		$	242,682		$	(3,737	)		-2	%
Gross profit:
Subscriptions	$	218,506		$	216,816		$	1,690			1	%
Professional services and other		18,654			26,452			(7,798	)		-29	%
Total gross profit	$	237,160		$	243,268		$	(6,108	)		-3	%
Gross margin:
Subscriptions		54	%		55	%
Professional services and other		25	%		29	%
Total gross margin		50	%		50	%

Cost of subscriptions was $110.0 million for the nine months ended November 30, 2023, a $4.6 million, or 4%, increase compared to $105.4 million for the nine months ended November 30, 2022. This increase was primarily driven by a $4.4 million increase in personnel costs including non-acquisition severance and $1.3 million in stock-based compensation, partially offset by a $2.4 million decrease in software and hosting costs when compared to the prior year.

Cost of professional services and other revenue was $55.0 million for the nine months ended November 30, 2023, a $8.4 million, or 13%, decrease compared to $63.4 million for the nine months ended November 30, 2022. The decrease was mainly due to a $7.2 million lower spend for consulting services related to our investment in strategic system integrator partnerships and a $2.0 million decrease in personnel costs when compared to the prior year.

Amortization of acquired intangible assets was $73.9 million for the nine months ended November 30, 2023 and 2022, respectively.

Our subscriptions gross margin was 54% and 55% for the nine months of fiscal 2024 and 2023, respectively.

Our professional services gross margin was down for the nine months of fiscal 2024 at 25% compared to 29% for the nine months of fiscal 2023 primarily driven by our lower revenue in fiscal 2024.

Research and Development

	Nine Months Ended November 30,
($ in thousands)	2023			2022			$ Change		% Change
Research and development	$	75,748		$	73,088		$	2,660		4	%
Percentage of revenue		16	%		15	%

Research and development expenses were $75.7 million for the nine months ended November 30, 2023, a $2.7 million, or 4%, increase compared to $73.1 million in the prior year. The increase was primarily due to a $2.0 million increase in stock-based compensation expense and $3.5 million increase in depreciation expense largely due to an increase in the amortization of capitalized software as compared to the prior year period. These expenses were partially offset by the reduced spend of $1.9 million for consulting services.

Sales and Marketing

	Nine Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Sales and marketing	$	63,692		$	67,348		$	(3,656	)		-5	%
Percentage of revenue		13	%		14	%

43

Sales and marketing expenses were $63.7 million for the nine months ended November 30, 2023, a $3.7 million, or 5%, decrease compared to $67.3 million in the prior year. The decrease was primarily driven by a $2.4 million decrease in personnel costs and $4.2 million decrease in marketing costs related to our rebranding efforts in fiscal 2023. These savings were partially offset by $2.4 million of higher expense for allowance for credit losses in fiscal 2024 compared to fiscal 2023.

General and Administrative

	Nine Months Ended November 30,
($ in thousands)	2023			2022			$ Change		% Change
General and administrative	$	85,414		$	66,774		$	18,640		28	%
Percentage of revenue		18	%		14	%

General and administrative expenses were $85.4 million for the nine months ended November 30, 2023, an $18.6 million, or 28%, increase compared to $66.8 million in the prior year. This increase was mainly a result of the $17.8 million legal settlement associated with to the unfavorable arbitration ruling related to a 2014 contract between Kewill (a predecessor of BluJay) and a customer regarding Kewill's performance under the agreement as noted above. Additionally, there was a $2.7 million increase in personnel costs mainly related to non-acquisition severance and $2.4 million in increased consulting services as compared to the prior year period. These increases in expenses were partially offset by $3.5 million in lower ROU asset impairments in fiscal 2024 as compared to fiscal 2023.

Other Operating Expenses

	Nine Months Ended November 30,
($ in thousands)	2023		2022		$ Change			% Change
Acquisition and other related expenses	$	416	$	14,313	$	(13,897	)		-97	%
Amortization of acquired intangible assets		60,135		62,523		(2,388	)		-4	%
Total other operating expenses	$	60,551	$	76,836	$	(16,285	)		-21	%

Acquisition and other related expenses were $0.4 million for the nine months ended November 30, 2023, a $13.9 million decrease compared to $14.3 million for the nine months ended November 30, 2022. The decrease was mainly related to legal and consulting expenses associated with the Logistyx Acquisition in fiscal 2023.

Amortization of acquired intangible assets was $60.1 million for the nine months ended November 30, 2023, a $2.4 million, or 4%, decrease, compared to $62.5 million for the nine months ended November 30, 2022.

Goodwill Impairment

	Nine Months Ended November 30,
($ in thousands)	2023		2022		$ Change		% Change
Goodwill impairment	$	1,097,741	$	514,816	$	582,925	nm

As indicated above, the market price of our Class A Common Stock and market capitalization declined significantly during the first and third quarters of fiscal 2024 and second quarter of fiscal 2023. These declines resulted in us determining that triggering events occurred and interim goodwill impairment assessments were performed. The result of the impairment assessments was the realization of a $1,097.7 million impairment charge in fiscal 2024 and a $514.8 million impairment charge in fiscal 2023.

Intangible Asset Impairment

The decline in our stock price and market capitalization was also a triggering event which resulted in interim indefinite-lived intangible asset impairment assessments. The result of the impairment assessments was the realization of a $34.0 million impairment charge in fiscal 2024. We did not have an impairment charge in fiscal 2023.

Interest and Other Expense, Net

	Nine Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Interest and other expense, net	$	(75,886	)	$	(54,732	)	$	(21,154	)		39	%

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Interest and other expense, net was $75.9 million for the nine months ended November 30, 2023, a $21.2 million, or 39%, increase compared to $54.7 million in the prior year. The increase was driven by higher interest rates in fiscal 2024.

Gain from Change in Tax Receivable Agreement

	Nine Months Ended November 30,
($ in thousands)	2023		2022		$ Change			% Change
Gain from change in tax receivable agreement     liability	$	8,355	$	9,089	$	(734	)		-8	%

During the nine months ended November 30, 2023, we recorded a gain of $8.4 million related to the change in the fair value of the tax receivable agreement liability, including interest, compared to a gain of $9.1 million during the nine months ended November 30, 2022. We have 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 gain (loss) from change in tax receivable agreement liability in the Unaudited Condensed Consolidated Statements of Operations in the period in which the change 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 nine months ended November 30, 2023 and 2022, the Tax Receivable Agreement applicable to this guidance increased by a negligible amount and $0.7 million, respectively.

Gain from Change in Fair Value of Warrant Liability

	Nine Months Ended November 30,
($ in thousands)	2023		2022		$ Change			% Change
Gain from change in fair value of warrant liability	$	18,786	$	36,764	$	(17,978	)		-49	%

We recorded a gain of $18.8 million during the nine months ended November 30, 2023, a $18.0 million decrease compared to a gain of $36.8 million in the prior year for the change in fair value on the revaluation of our warrant liability associated with our warrants. We are required to revalue the warrants at the end of each reporting period and reflect in the Unaudited 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 from Change in Fair Value of Contingent Consideration

	Nine Months Ended November 30,
($ in thousands)	2023		2022		$ Change			% Change
Gain from change in fair value of contingent     consideration	$	15,360	$	17,760	$	(2,400	)		-14	%

We recorded a gain of $15.4 million during the nine months ended November 30, 2023, a $2.4 million decrease compared to a gain of $17.8 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 Unaudited 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

	Nine Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Loss before income taxes	$	(1,213,371	)	$	(546,713	)	$	(666,658	)	nm
Income tax benefit		73,827			130,010			(56,183	)		-43	%

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Loss before income taxes was $1,213.4 million for the nine months ended November 30, 2023, a $666.7 million increase compared to $546.7 million for the nine months ended November 30, 2022. The increase in the loss was primarily related to the $582.9 million larger impairment on goodwill in fiscal 2024 and the $34.0 million impairment on indefinite-lived intangible assets in fiscal 2024. Additionally, there was a $18.0 million decrease in the gain associated with the change in the fair value of the warrant liability, $2.4 million decrease 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 and $21.2 million of higher interest expense when compared to the prior year. We also recorded an $17.8 million expense for the unfavorable arbitration ruling related to the Kewill customer case in the second quarter of fiscal 2024. Partially offsetting the increases in the loss was a $13.9 million reduction in acquisition and other related expenses due to the Logistyx Acquisition in March 2022.

Income tax benefit was $73.8 million, or 6.1%, for the nine months ended November 30, 2023 compared to $130.0 million, or 23.8%, for the nine months ended November 30, 2022. $69.0 million of the income tax benefit, net of a valuation allowance of $178.9 million, for the nine months ended November 30, 2023 primarily resulted from the discrete impact of the goodwill impairment taken in fiscal 2024. The remainder of the change in our effective tax rate between periods primarily relates to increases in valuation allowances in jurisdictions within which certain deferred tax assets are not being benefited as well as 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 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.

We calculate and define Non-GAAP gross profit as gross profit excluding 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: goodwill impairment charge, indefinite-lived intangible asset impairment charge, right-of-use assets impairment charge, transaction-related costs, gain (loss) from change 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, litigation settlements, goodwill impairment charge, indefinite-lived intangible asset impairment charge and right-of-use assets impairment charge), non-cash (for example, in the case of depreciation, amortization, gain (loss) from change in the tax receivable agreement liability, (gain) loss from changes in the fair value of the warrant liability and contingent consideration and share-based compensation) 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.

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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 November 30,						Nine Months Ended November 30,
($ in thousands)	2023			2022			2023			2022
Gross profit
Reported gross profit	$	78,576		$	84,143		$	237,160		$	243,268
Depreciation and amortization		28,681			28,388			86,102			85,447
Non-recurring/non-operating costs (1)		1,099			513			3,269			2,115
Share-based compensation (2)		1,305			542			3,068			862
Non-GAAP gross profit	$	109,661		$	113,586		$	329,599		$	331,692
Gross margin		49.9	%		51.0	%		49.8	%		50.1	%
Non-GAAP gross margin		69.6	%		68.9	%		69.2	%		68.3	%

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

(2)Reflects non-cash, long-term share-based compensation expense.

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

	Three Months Ended November 30,						Nine Months Ended November 30,
($ in thousands)	2023			2022			2023			2022
Net (loss) income	$	(740,031	)	$	5,503		$	(1,139,544	)	$	(416,703	)
Adjustments:
Interest expense, net		24,941			19,509			73,889			52,411
Income tax benefit		(5,413	)		(7,877	)		(73,827	)		(130,010	)
Depreciation and amortization		53,590			52,451			160,758			159,831
EBITDA		(666,913	)		69,586			(978,724	)		(334,471	)
EBITDA Margin		-423.4	%		42.2	%		-205.6	%		-68.8	%
Goodwill impairment charge (1)		687,700			—			1,097,741			514,816
Intangible asset impairment charge (2)		30,000			—			34,000			—
Right-of-use assets impairment charge (3)		70			1,761			619			4,137
Acquisition-related adjustments (4)		9			1,969			416			14,313
Gain from change in tax receivable agreement     liability (5)		(2,888	)		(2,697	)		(8,355	)		(9,089	)
Gain from change in fair value of warrant liability (6)		(2,617	)		(16,150	)		(18,786	)		(36,764	)
Gain from change in fair value of contingent     consideration (7)		(5,100	)		(6,300	)		(15,360	)		(17,760	)
Non-recurring/non-operating costs (8)		8,254			3,189			17,180			7,563
Legal settlement (9)		—			—			17,750			—
Share-based compensation (10)		6,841			4,797			18,744			13,157
Adjusted EBITDA	$	55,356		$	56,155		$	165,225		$	155,902
Adjusted EBITDA Margin		35.1	%		34.1	%		34.7	%		32.1	%

(1)Represents the goodwill impairment taken in the first and third quarters of fiscal 2024 and second quarter of fiscal 2023.

(2)Represents the indefinite-lived tradename / trade name impairment taken in the first and third quarters of fiscal 2024.

(3)Represents the impairment of our operating lease ROU 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 BluJay and Logistyx acquisitions.

(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 B-2 common stock and Series 2 RCUs.

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(8)Primarily includes non-recurring expenses such as non-acquisition related severance, foreign currency transaction gains and losses, systems integrations and non-recurring consulting and advisory fees.

(9)Represents the $17.8 million litigation settlement for the unfavorable arbitration ruling related to the Kewill customer case.

(10)Reflects non-cash, long-term share-based compensation expense.

Three Months Ended November 30, 2023 compared to Three Months Ended November 30, 2022

Gross Profit

	Three Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Gross profit	$	78,576		$	84,143		$	(5,567	)		-7	%
Gross margin		49.9	%		51.0	%

Gross profit was $78.6 million for the three months ended November 30, 2023, a $5.6 million, or 7%, decrease compared to $84.1 million for three months ended November 30, 2022. Subscriptions gross profit was down 4% while professional services and other gross profit was down 26%. Gross margin was 50% for the third quarter of fiscal 2024 compared to 51% for the third quarter of fiscal 2023.

Non-GAAP Gross Profit

	Three Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Non-GAAP gross profit	$	109,661		$	113,586		$	(3,925	)		-3	%
Non-GAAP gross margin		69.6	%		68.9	%

Non-GAAP gross profit was $109.7 million for the three months ended November 30, 2023, a $3.9 million, or 3%, decrease compared to $113.6 million for the three months ended November 30, 2022. The decrease in Non-GAAP gross profit was primarily due to a decrease in total revenue partially offset by lower software and hosting costs in subscription costs of revenue and consulting services in the professional services and other costs of revenue. The Non-GAAP gross margin increased in the third quarter of fiscal 2024 to 70% compared to 69% in the third quarter of fiscal 2023.

EBITDA

	Three Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
EBITDA	$	(666,913	)	$	69,586		$	(736,499	)	nm
EBITDA margin		-423.4	%		42.2	%

EBITDA was a negative $666.9 million for the three months ended November 30, 2023, a $736.5 million decrease compared to $69.6 million EBITDA for three months ended November 30, 2022. EBITDA margin was a negative 423% for the third quarter of fiscal 2024 compared to 42% in the prior year. The decrease in EBITDA and EBITDA margin was primarily related to the $687.7 million impairment on goodwill taken in fiscal 2024, the $30.0 million indefinite-lived intangible asset charge taken in fiscal 2024, the $13.5 million decrease in the gain for the fair value adjustment for the warrant liability and a $1.2 million decrease in the gain associated with the fair value adjustment for the contingent consideration liability related to the restricted Series B-2 common stock as compared to prior periods. These reductions were partially offset by the $2.0 million decrease in acquisition-related expenses between periods.

Adjusted EBITDA

	Three Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Adjusted EBITDA	$	55,356		$	56,155		$	(799	)		-1	%
Adjusted EBITDA margin		35.1	%		34.1	%

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Adjusted EBITDA was $55.4 million for the three months ended November 30, 2023, a $0.8 million, or 1%, decrease compared to $56.2 million for the three months ended November 30, 2022. Adjusted EBITDA margin was 35% for the third quarter of fiscal 2024 compared to 34% for the third quarter of fiscal 2023. The decrease in Adjusted EBITDA was primarily a result lower Non-GAAP gross profit and lower operating expenses mainly comprised of $3.0 million in personnel costs partially offset by $1.3 million of higher expense for allowance for credit losses in sales and marketing expenses compared to prior periods.

Nine Months Ended November 30, 2023 compared to Nine Months Ended November 30, 2022

Gross Profit

	Nine Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Gross profit	$	237,160		$	243,268		$	(6,108	)		-3	%
Gross margin		49.8	%		50.1	%

Gross profit was $237.2 million for the nine months ended November 30, 2023, a $6.1 million, or 3%, decrease compared to $243.3 million for nine months ended November 30, 2022. Subscriptions gross profit was up 1% while professional services and other gross profit was down 29%. Gross margin was flat at 50% for the first nine months of fiscal 2024 and 2023.

Non-GAAP Gross Profit

	Nine Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
Non-GAAP gross profit	$	329,599		$	331,692		$	(2,093	)		-1	%
Non-GAAP gross margin		69.2	%		68.3	%

Non-GAAP gross profit was $329.6 million for the nine months ended November 30, 2023, a $2.1 million, or 1%, decrease compared to $331.7 million for the nine months ended November 30, 2022. The decrease in Non-GAAP gross profit was driven by a decrease in professional services and other Non-GAAP gross profit, partially offset by an increase in subscriptions Non-GAAP gross profit. The Non-GAAP gross margin increased for the nine months of fiscal 2024 to 69% compared to 68% for the nine months of fiscal 2023.

EBITDA

	Nine Months Ended November 30,
($ in thousands)	2023			2022			$ Change			% Change
EBITDA	$	(978,724	)	$	(334,471	)	$	(644,253	)	nm
EBITDA margin		-205.6	%		-68.8	%

EBITDA was a negative $978.7 million for the nine months ended November 30, 2023, a $644.3 million decrease compared to a negative $334.5 million for nine months ended November 30, 2022. EBITDA margin was negative 206% for the nine months of fiscal 2024 compared to negative 69% in the prior year. The decrease in EBITDA and EBITDA margin was primarily related to the $582.9 million higher impairment on goodwill, $34.0 million impairment on indefinite-lived intangible assets in fiscal 2024, $17.8 million expense for the unfavorable arbitration ruling related to the Kewill customer case, a decrease in the gain of $18.0 million for the fair value adjustment for the warrant liability and a decrease in the gain of $2.4 million associated with the fair value adjustment for the contingent consideration liability related to the restricted Series B-2 common stock between periods. Partially offsetting these reductions was a decrease of $13.9 million of acquisition-related expenses between periods.

Adjusted EBITDA

	Nine Months Ended November 30,
($ in thousands)	2023			2022			$ Change		% Change
Adjusted EBITDA	$	165,225		$	155,902		$	9,323		6	%
Adjusted EBITDA margin		34.7	%		32.1	%

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Adjusted EBITDA was $165.2 million for the nine months ended November 30, 2023, a $9.3 million, or 6%, increase compared to $155.9 million for the nine months ended November 30, 2022. Adjusted EBITDA margin was 35% for the nine months of fiscal 2024 compared to 32% for the nine months of fiscal 2023. The increase in Adjusted EBITDA and Adjusted EBITDA margin was primarily a result of lower operating expenses comprised of $4.5 million in personnel costs, $3.1 million in spend for consulting expenses and $4.3 million in marketing expenses due to the rebranding efforts in fiscal 2023. These savings were partially offset by $2.4 million of higher expense for allowance for credit losses in sales and marketing expenses compared to prior periods.

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 $110.3 million in cash and cash equivalents and $155.0 million of unused borrowing capacity under our 2021 Revolving Credit Facility as of November 30, 2023. See Note 12, 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 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.

Debt

2021 Term Loan and Revolving Credit Facility

In February 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. In September 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. In April 2022, the Credit Agreement was amended to include a $190.0 million incremental term loan bringing our total borrowing under the term loans to $1,095.0 million.

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 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 resulting in an interest rate of 8.96% and 8.08% as of November 30, 2023 and February 28, 2023, respectively, which was based on SOFR plus 350 basis points and LIBOR plus 350 basis points, respectively. As of November 30, 2023 and February 28, 2023, the 2021 Term Loan had a principal balance outstanding of $1,070.0 million and $1,078.2 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 November 30, 2023 and February 28, 2023.

The average interest rate on our 2021 Term Loan was impacted by changes in market interest rates, which was attributed to the Federal Open Market Committee (FOMC) of the Federal Reserve repeatedly raising their target benchmark interest rate throughout fiscal 2023 and into fiscal 2024, resulting in subsequent prime rate increases of 150 basis points between December 2022 and November 2023. Based on our current outstanding 2021 Term Loan as of November 30, 2023, this increase would result in an additional $16.0 million of interest expense per year.

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Beginning in March 2023, we entered into zero-cost interest rate collars to reduce our exposure to the variability of our interest rate associated with our outstanding debt. By keeping interest rates within the executed bands, or caps and floors, of the collars, we are able to reduce exposure to the interest rate risk. Effective March 31, 2023, we entered into an interest rate collar with a notional amount of $200.0 million and a maturity date of March 31, 2026. The executed cap was 4.75% and the floor was 2.57%. Effective April 6, 2023, an additional interest rate collar was executed with a notional amount of $100.0 million and a maturity date of March 31, 2026. The executed cap was 4.50% and the floor was 2.56%.

Cash Flows

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

	Nine Months Ended November 30,
($ in thousands)	2023			2022
Net cash provided by operating activities	$	56,655		$	43,151
Net cash used in investing activities		(22,301	)		(222,716	)
Net cash (used in) provided by financing activities		(10,798	)		103,351
Effect of exchange rate changes on cash and cash equivalents		2,040			478
Net increase (decrease) in cash, cash equivalents and restricted cash		25,596			(75,736	)
Cash, cash equivalents and restricted cash at beginning of period		104,342			174,554
Cash, cash equivalents and restricted cash at end of period	$	129,938		$	98,818

Nine Months Ended November 30, 2023 compared to Nine Months Ended November 30, 2022

As of November 30, 2023, our consolidated cash, cash equivalents and restricted cash was $129.9 million, a $25.6 million increase from our balance of $104.3 million as of February 28, 2023.

Net cash provided by operating activities for the nine months ended November 30, 2023 was $56.7 million compared to $43.2 million for the nine months ended November 30, 2022. The $13.5 million increase in cash was primarily driven by less cash used for consulting and acquisition-related expenses in fiscal 2024 and less cash used for working capital items in fiscal 2024 for such items as the following:

•increase in cash provided by accounts receivable;

•increase in cash from channel client deposits;

•offset by an increase in the use of cash for accounts payable and accrued liabilities which includes items such as accrued compensation, accrued interest, trade accounts payable and litigation settlements; and

•an increase in cash for prepaid expenses and other current assets for such items as deferred commissions and security deposits.

Net cash used in investing activities was $22.3 million and $222.7 million for the nine months ended November 30, 2023 and 2022, respectively. During the nine months of fiscal 2024 and 2023, $22.3 million and $40.5 million were used for the acquisition of software and property related to our data centers, respectively. Additionally, during fiscal year 2023, net cash of $179.2 million was used for the Logistyx Acquisition and $3.0 million was used for a minority investment in a private firm during the first quarter of fiscal 2023.

Net cash used in financing activities for the nine months ended November 30, 2023 was $10.8 million compared to net cash provided by financing activities of $103.4 million for nine months ended November 30, 2022. The decrease in cash provided by financing activities was mainly due to the following:

•We received a $190.0 million incremental term loan for the Logistyx Acquisition and repaid the $95.0 million under the 2021 Revolving Credit Facility in fiscal 2023;

•During fiscal 2023, we paid $4.8 million in debt issuance costs related to the $190.0 million term loan; and

•The repayments under the 2021 Term Loan were consistent between periods.

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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. The Tax Receivable Agreement provides for the payment by the Company of 85% of certain tax benefits that are realized or deemed realized as a result of increases in tax, utilization of pre-existing tax attributes of certain sellers and realization of additional tax benefits attributable to payments under the Tax Receivable Agreement. 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. We will retain the benefit of the remaining 15% of these cash savings.

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. We have not made any Tax Receivable Agreement payments to any Tax Receivable Agreement holders of E2open Holdings as of November 30, 2023.

The liability related to the Tax Receivable Agreement was $61.4 million and $69.7 million as of November 30, 2023 and February 28, 2023, respectively, assuming (1) a corporate tax rate of 24.2% as of November 30, 2023 and February 28, 2023, (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. Interest accrued on the portion of the Tax Receivable Agreement liability recorded under ASC 805 at a rate of LIBOR plus 100 basis points through June 30, 2023. Beginning July 1, 2023, interest will accrue at SOFR plus the applicable spread for the quarter. The portion of the Tax Receivable Agreement liability under ASC 450 is recorded on a gross undiscounted basis. These transactions, such as a conversion of Common Units to Class A Common Stock, result in a change in the Tax Receivable Agreement liability and a charge to equity.

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 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.

As of November 30, 2023, we have a current Tax Receivable Agreement liability of $1.7 million which is recorded in accounts payable and accrued liabilities on the Condensed Consolidated Balance Sheets. The determination of current and long-term is based on management's estimate of taxable income for the fiscal year and the determination that a Tax Receivable Agreement liability payment is due and payable within the next twelve months. To the extent the estimate differs from actual results, a reclass may be required for portions of the Tax Receivable Agreement liability between current and long-term.

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.

52

Warrant Liability

As of November 30, 2023 and February 28, 2023, there were an aggregate of 29,079,872 warrants outstanding. Each warrant entitles its holder to purchase one share of our Class A Common Stock at an exercise price of $11.50 per share. The warrants are recorded as a liability in warrant liability on the Condensed Consolidated Balance Sheets with a balance of $10.8 million and $29.6 million as of November 30, 2023 and February 28, 2023, respectively. During the three months ended November 30, 2023 and 2022, a gain of $2.6 million and $16.2 million was recognized in gain from change in fair value of the warrant liability in the Unaudited Condensed Consolidated Statements of Operations, respectively. During the nine months ended November 30, 2023 and 2022, a gain of $18.8 million and $36.8 million was recognized in gain from change in fair value of the warrant liability, respectively.

Contingent Consideration

The contingent consideration liability was $14.2 million and $29.5 million as of November 30, 2023 and February 28, 2023, respectively. The fair value remeasurements resulted in a gain of $5.1 million and $6.3 million for the three months ended November 30, 2023 and 2022, respectively. The fair value remeasurements resulted in a gain of $15.4 million and $17.8 million for the nine months ended November 30, 2023 and 2022, respectively. The contingent liability represents the Series B-2 common stock and Series 2 RCUs.

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 November 30, 2023 were: $2.3 million for December 1, 2023 through February 29, 2024, $8.5 million for fiscal 2025, $6.6 million for fiscal 2026, $5.5 million for fiscal 2027, $3.3 million for fiscal 2028 and $2.9 million thereafter. These numbers include interest of $3.9 million.

Our non-cancelable financing lease arrangements relate to software and computer equipment and have various expiration dates through November 2028. 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 November 30, 2023 were: $0.4 million for December 1, 2023 through February 29, 2024, $1.4 million for fiscal 2025, $1.3 million for fiscal 2026, $0.8 million for fiscal 2027, $0.8 million for fiscal 2028 and $0.6 million thereafter. These numbers include interest of $0.8 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 2023 Form 10-K.

There have been no changes to our critical accounting policies and estimates during the three months ended November 30, 2023 from those previously disclosed in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2023 Form 10-K.

Recent Accounting Pronouncements

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

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes in the market risks during the three months ended November 30, 2023 from those previously disclosed in Part II, Item 7A., Quantitative and Qualitative Disclosures About Market Risk of our 2023 Form 10-K.

53

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 Interim 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 Interim 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 Interim 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 November 30, 2023 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.

In 2014, Kewill (a predecessor of BluJay) entered into a software licensing and service contract with a customer that resulted in a dispute over Kewill’s performance under the agreement. In June 2020, prior to our acquisition of BluJay, the customer filed suit. BluJay and its external counsel considered the claims meritless and intended to file a counter claim for delinquent uncollected receivables. At the time of the BluJay Acquisition in September 2021, an allowance for credit losses was recorded in purchase accounting against the uncollected receivables from this customer. No further accrual was established for this litigation at the time of the acquisition or in subsequent periods through the first quarter of fiscal 2024, as in our judgement, which was based on the advice of external legal counsel, the claims were without merit. Any loss beyond the uncollected receivables was not considered probable and the maximum exposure was believed to be immaterial. In February 2022, consistent with the related contractual terms, the case moved to binding arbitration. Upon conclusion of the arbitration proceedings in August 2023, the arbitrator ruled against BluJay. On September 14, 2023, the parties agreed to a settlement for $17.8 million which resolved the matter and released us from all alleged claims. The settlement was paid on September 20, 2023.

The settlement is not an admission of liability or wrongdoing by us or our predecessors, nor does it validate the alleged claims.

We accrued $17.8 million for the settlement in the second quarter of fiscal 2024 as part of general and administrative expenses on the Condensed Consolidated Statement of Operations.

From time to time, we have exposure and are subject to contingencies that arise in the ordinary course of business for a variety of claims. 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 other such contingencies will have a material adverse effect upon our Unaudited Condensed Consolidated Balance Sheets, Statements of Operations or Statements of Cash Flows.

54

Item 1A. Risk Factors.

There have been no material changes in our risk factors during the three months ended November 30, 2023 from those previously disclosed in Part I, Item 1A., Risk Factors of our 2023 Form 10-K. You should carefully consider the risk factors discussed in our 2023 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

None.

Item 5. Other Information

None.

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 on February 10, 2021).
10.1	Release and Non-Competition Agreement, by and between E2open Parent Holdings, Inc. and Michael A. Farlekas, dated October 10, 2023 (incorporated by reference to Exhibit 10.1 of E2open Parent Holdings, Inc.'s Form 8-K filed with the SEC on October 10, 2023).
10.2	Letter Agreement, by and between E2open Parent Holdings, Inc. and Andrew Appel, dated as of October 10, 2023 (incorporated by reference to Exhibit 10.2 of E2open Parent Holdings, Inc.'s Form 8-K filed with the SEC on October 10, 2023).
10.3	Restricted Stock Agreement for Andrew Appel dated October 10, 2023 (incorporated by reference to Exhibit 10.3 of E2open Parent Holdings, Inc.'s Form 8-K filed with the SEC on October 10, 2023).
10.4	Form of Retention Agreement (incorporated by reference to Exhibit 10.1 of E2open Parent Holdings, Inc.'s Form 8-K filed with the SEC on November 22, 2023).
31.1*	Certification of Interim 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 Interim 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.

55

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: January 9, 2024	By:	/s/ Andrew M. Appel
		Andrew M. Appel
		Interim Chief Executive Officer
Date: January 9, 2024	By:	/s/ Marje Armstrong
		Marje Armstrong
		Chief Financial Officer

56

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, Andrew Appel, 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: January 9, 2024	By:	/s/ Andrew M. Appel
	Name:	Andrew M. Appel
	Title:	Interim 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: January 9, 2024	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 November 30, 2023 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: January 9, 2024	By:	/s/ Andrew M. Appel
	Name:	Andrew M. Appel
	Title:	Interim 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 November 30, 2023 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: January 9, 2024	By:	/s/ Marje Armstrong
	Name:	Marje Armstrong
	Title:	Chief Financial Officer
		(Principal Financial and Accounting Officer)

XML

Document and Entity Information - shares	9 Months Ended
	Nov. 30, 2023	Jan. 05, 2024
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
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		305,999,321
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	Nov. 30, 2023	Feb. 28, 2023
Assets
Cash and cash equivalents	$ 110,279	$ 93,032
Restricted cash	19,659	11,310
Accounts receivable, net	127,330	174,809
Prepaid expenses and other current assets	30,483	25,200
Total current assets	287,751	304,351
Goodwill	1,846,263	2,927,807
Intangible assets, net	886,315	1,051,124
Property and equipment, net	70,024	72,476
Operating lease right-of-use assets	21,580	18,758
Other noncurrent assets	28,559	25,659
Total assets	3,140,492	4,400,175
Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities	83,196	97,491
Channel client deposits payable	19,659	11,310
Deferred revenue	176,253	203,824
Current portion of notes payable	11,122	11,144
Current portion of operating lease obligations	7,317	7,622
Current portion of financing lease obligations	1,120	2,582
Income taxes payable	1,721	2,190
Total current liabilities	300,388	336,163
Long-term deferred revenue	2,833	2,507
Operating lease obligations	17,959	15,379
Financing lease obligations	3,188	1,049
Notes payable	1,038,908	1,043,636
Tax receivable agreement liability	59,663	69,745
Warrant liability	10,830	29,616
Contingent consideration	14,188	29,548
Deferred taxes	66,038	144,529
Other noncurrent liabilities	721	1,083
Total liabilities	1,514,716	1,673,255
Commitments and Contingencies (Note 26)
Stockholders' Equity
Additional paid-in capital	3,395,158	3,378,633
Accumulated other comprehensive loss	(45,892)	(68,603)
Accumulated deficit	(1,831,502)	(803,679)
Treasury stock, at cost: 176,654 shares as of November 30, 2023 and February 28, 2023	(2,473)	(2,473)
Total E2open Parent Holdings, Inc. equity	1,515,321	2,503,908
Noncontrolling interest	110,455	223,012
Total stockholders' equity	1,625,776	2,726,920
Total liabilities and stockholders' equity	3,140,492	4,400,175
Class A ordinary shares
Stockholders' Equity
Common stock	30	30
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) - $ / shares	Nov. 30, 2023	Feb. 28, 2023
Treasury stock, shares	176,654	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	304,564,709	302,582,007
Common stock, shares outstanding	304,388,055	302,405,353
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	32,722,920	32,992,007
Common stock, shares outstanding	32,722,920	32,992,007
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	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Revenue
Total revenue	$ 157,497,000	$ 164,893,000	$ 476,105,000	$ 485,950,000
Cost of Revenue
Amortization of acquired intangible assets	24,590,000	24,402,000	73,918,000	73,869,000
Total cost of revenue	78,921,000	80,750,000	238,945,000	242,682,000
Gross Profit	78,576,000	84,143,000	237,160,000	243,268,000
Operating Expenses
Research and development	24,937,000	24,939,000	75,748,000	73,088,000
Sales and marketing	22,583,000	20,448,000	63,692,000	67,348,000
General and administrative	24,739,000	23,073,000	85,414,000	66,774,000
Acquisition-related expenses	9,000	1,969,000	416,000	14,313,000
Amortization of acquired intangible assets	20,014,000	19,965,000	60,135,000	62,523,000
Goodwill impairment	687,700,000	0	1,097,741,000	514,816,000
Intangible asset impairment	30,000,000	0	34,000,000	0
Total operating expenses	809,982,000	90,394,000	1,417,146,000	798,862,000
Loss from operations	(731,406,000)	(6,251,000)	(1,179,986,000)	(555,594,000)
Other income (expense)
Interest and other expense, net	(24,643,000)	(21,270,000)	(75,886,000)	(54,732,000)
Gain from change in tax receivable agreement liability	2,888,000	2,697,000	8,355,000	9,089,000
Gain from change in fair value of contingent consideration	5,100,000	6,300,000	15,360,000	17,760,000
Total other (expense) income	(14,038,000)	3,877,000	(33,385,000)	8,881,000
Loss before income tax provision	(745,444,000)	(2,374,000)	(1,213,371,000)	(546,713,000)
Income tax benefit	5,413,000	7,877,000	73,827,000	130,010,000
Net (loss) income	(740,031,000)	5,503,000	(1,139,544,000)	(416,703,000)
Less: Net (loss) income attributable to noncontrolling interests	(72,475,000)	698,000	(111,721,000)	(41,464,000)
Net (loss) income attributable to E2open Parent Holdings, Inc	$ (667,556,000)	$ 4,805,000	$ (1,027,823,000)	$ (375,239,000)
Weighted average common shares outstanding:
Basic	303,848	302,201	303,188	301,822
Diluted	303,848	302,359	303,188	301,822
Net (loss) income attributable to E2open Parent Holdings, Inc. common shareholders per share:
Basic	$ (2.2)	$ 0.02	$ (3.39)	$ (1.24)
Diluted	$ (2.2)	$ 0.02	$ (3.39)	$ (1.24)
Warrants
Other income (expense)
Gain from change in fair value of warrant liability	$ 2,617,000	$ 16,150,000	$ 18,786,000	$ 36,764,000
Subscriptions
Revenue
Total revenue	132,800,000	134,884,000	402,437,000	396,052,000
Cost of Revenue
Cost of Revenue	36,689,000	35,931,000	110,013,000	105,367,000
Professional Services and Other
Revenue
Total revenue	24,697,000	30,009,000	73,668,000	89,898,000
Cost of Revenue
Cost of Revenue	$ 17,642,000	$ 20,417,000	$ 55,014,000	$ 63,446,000

XML

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Net (loss) income	$ (740,031)	$ 5,503	$ (1,139,544)	$ (416,703)
Other comprehensive income (loss), net:
Net foreign currency translation income (loss), net of tax of ($5,395) and $10,275 as of November 30, 2022	1,339	14,369	20,271	(58,086)
Total other comprehensive income (loss), net	307	13,949	22,711	(58,713)
Comprehensive (loss) income	(739,724)	19,452	(1,116,833)	(475,416)
Less: Comprehensive (loss) income attributable to noncontrolling interest	(72,449)	2,112	(109,494)	(47,306)
Comprehensive (loss) income attributable to E2open Parent Holdings, Inc.	(667,275)	17,340	(1,007,339)	(428,110)
Foreign Exchange Forward Contracts
Other comprehensive income (loss), net:
Net deferred (losses) gains	(4)	$ (420)	729	$ (627)
Interest Rate Collar Agreements
Other comprehensive income (loss), net:
Net deferred (losses) gains	$ (1,028)		$ 1,711

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Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Nov. 30, 2022	Nov. 30, 2022
Statement of Comprehensive Income [Abstract]
Foreign currency translation income (loss), tax	$ (5,395)	$ 10,275

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Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive (Loss) Income	Accumulated Deficit	Treasury Stock	Parent	Noncontrolling Interest
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 Income (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
Other comprehensive income (loss)	(58,713)
Net Income (loss)	(416,703)
Balance at Nov. 30, 2022	3,017,717	30	3,374,388	(77,732)	(530,215)	(2,473)	2,763,998	253,719
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 conversions on Tax Receivable Agreement, net of tax	(176)		(176)				(176)
Other comprehensive income (loss)	(41,962)			(41,962)			(41,962)
Net Income (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
Share-based compensation	4,797		4,797				4,797
Conversion of Common Units to Common Stock			625				625	(625)
Vesting of restricted stock awards, net of shares withheld for taxes	(340)	(1)	(339)				(340)
Impact of Common Unit conversions on Tax Receivable Agreement, net of tax	(1,010)		(1,010)				(1,010)
Other comprehensive income (loss)	13,949			13,949			13,949
Net Income (loss)	5,503				4,805		4,805	698
Balance at Nov. 30, 2022	3,017,717	30	3,374,388	(77,732)	(530,215)	(2,473)	2,763,998	253,719
Balance at Feb. 28, 2023	2,726,920	30	3,378,633	(68,603)	(803,679)	(2,473)	2,503,908	223,012
Share-based compensation	4,441		4,441				4,441
Vesting of restricted stock awards, net of shares withheld for taxes	(1,830)		(1,830)				(1,830)
Other comprehensive income (loss)	8,170			8,170			8,170
Net Income (loss)	(360,884)				(325,395)		(325,395)	(35,489)
Balance at May. 31, 2023	2,376,817	30	3,381,244	(60,433)	(1,129,074)	(2,473)	2,189,294	187,523
Balance at Feb. 28, 2023	2,726,920	30	3,378,633	(68,603)	(803,679)	(2,473)	2,503,908	223,012
Other comprehensive income (loss)	22,711
Net Income (loss)	(1,139,544)
Balance at Nov. 30, 2023	1,625,776	30	3,395,158	(45,892)	(1,831,502)	(2,473)	1,515,321	110,455
Balance at May. 31, 2023	2,376,817	30	3,381,244	(60,433)	(1,129,074)	(2,473)	2,189,294	187,523
Share-based compensation	7,426		7,426				7,426
Vesting of restricted stock awards, net of shares withheld for taxes	(100)		(100)				(100)
Other comprehensive income (loss)	14,234			14,234			14,234
Net Income (loss)	(38,629)				(34,872)		(34,872)	(3,757)
Balance at Aug. 31, 2023	2,359,748	30	3,388,570	(46,199)	(1,163,946)	(2,473)	2,175,982	183,766
Share-based compensation	6,845		6,845				6,845
Conversion of Common Units to Common Stock			836				836	(836)
Vesting of restricted stock awards, net of shares withheld for taxes	(1,129)		(1,129)				(1,129)
Impact of Common Unit conversions on Tax Receivable Agreement, net of tax	36		36				36
Other comprehensive income (loss)	307			307			307
Net Income (loss)	(740,031)				(667,556)		(667,556)	(72,475)
Balance at Nov. 30, 2023	$ 1,625,776	$ 30	$ 3,395,158	$ (45,892)	$ (1,831,502)	$ (2,473)	$ 1,515,321	$ 110,455

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	1 Months Ended	3 Months Ended				9 Months Ended		12 Months Ended
	Feb. 28, 2022	Nov. 30, 2023	May 31, 2023	Nov. 30, 2022	May 31, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
Cash flows from operating activities
Net (loss) income		$ (740,031,000)	$ (360,884,000)	$ 5,503,000	$ (12,621,000)	$ (1,139,544,000)	$ (416,703,000)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization						160,758,000	159,831,000
Amortization of deferred commissions						4,452,000	2,878,000
Provision for credit losses						2,657,000	315,000
Amortization of debt issuance costs						3,961,000	3,783,000
Amortization of operating lease right-of-use assets						5,454,000	5,813,000
Share-based compensation						18,728,000	13,139,000
Deferred income taxes						(79,791,000)	(143,012,000)
Right-of-use assets impairment charge						619,000	4,137,000
Goodwill impairment charge		687,700,000		0		1,097,741,000	514,816,000	$ 901,566,000
Indefinite-lived intangible asset impairment charge		30,000,000		0		34,000,000	0
Gain from change in tax receivable agreement liability						(8,355,000)	(9,089,000)
Gain from change in fair value of contingent consideration		(5,100,000)		(6,300,000)		(15,360,000)	(17,760,000)
Gain on operating lease termination						(187,000)
(Gain) loss on disposal of property and equipment						(16,000)	537,000
Changes in operating assets and liabilities:
Accounts receivable						44,822,000	10,876,000
Prepaid expenses and other current assets						(3,972,000)	4,311,000
Other noncurrent assets						(7,351,000)	(4,094,000)
Accounts payable and accrued liabilities						(16,712,000)	(12,946,000)
Channel client deposits payable						8,349,000	(5,943,000)
Deferred revenue						(27,244,000)	(26,899,000)
Changes in other liabilities						(7,568,000)	(4,075,000)
Net cash provided by operating activities						56,655,000	43,151,000
Cash flows from investing activities
Payments for acquisitions - net of cash acquired							(179,243,000)
Capital expenditures						(22,301,000)	(40,473,000)
Minority investment in private firm	$ (2,500,000)						(3,000,000)
Net cash used in investing activities						(22,301,000)	(222,716,000)
Cash flows from financing activities
Proceeds from indebtedness							215,000,000
Repayments of indebtedness						(8,366,000)	(103,174,000)
Repayments of financing lease obligations						(2,432,000)	(2,312,000)
Repurchase of common stock							(1,397,000)
Payments of debt issuance costs							(4,766,000)
Net cash (used in) provided by financing activities						(10,798,000)	103,351,000
Effect of exchange rate changes on cash and cash equivalents						2,040,000	478,000
Net increase (decrease) in cash, cash equivalents and restricted cash						25,596,000	(75,736,000)
Cash, cash equivalents and restricted cash at beginning of period			$ 104,342,000		$ 174,554,000	104,342,000	174,554,000	174,554,000
Cash, cash equivalents and restricted cash at end of period	174,554,000	129,938,000		98,818,000		129,938,000	98,818,000	104,342,000
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents		110,279,000		85,688,000		110,279,000	85,688,000	93,032,000
Restricted cash		19,659,000		13,130,000		19,659,000	13,130,000
Total cash, cash equivalents and restricted cash	$ 174,554,000	129,938,000		98,818,000		129,938,000	98,818,000	$ 104,342,000
Warrants
Adjustments to reconcile net loss to net cash from operating activities:
Gain from change in fair value of warrant liability		$ (2,617,000)		$ (16,150,000)		$ (18,786,000)	$ (36,764,000)

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Organization and Basis of Presentation

9 Months Ended

Nov. 30, 2023

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.

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." (the Company or 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 connected supply chain software platform that enables the largest companies to transform the way they make, move and sell goods and services. With the broadest cloud-native global platform purpose-built for the modern supply chains, we connect manufacturing, logistics, channel and distributing partners as one multi-enterprise network. Our SaaS platform anticipates disruptions and opportunities to help companies improve efficiency, reduce waste and operate sustainably.

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. 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. The unaudited operating results for interim periods reported are not necessarily indicative of the results for the entire fiscal year. For further information, refer to the consolidated financial statements and notes thereto included in our 2023 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.

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

9 Months Ended

Nov. 30, 2023

Accounting Standards Update and Change in Accounting Principle [Abstract]

Accounting Standards

2. Accounting Standards

Recently Adopted Accounting Guidance

In March 2020, the Financial Accounting Standards Board (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 expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criterion are met. On January 7, 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. The optional expedients and exceptions can be applied to contract modifications made until December 31, 2024. We have transitioned our debt instruments from LIBOR to SOFR and our Tax Receivable Agreement liability from LIBOR plus 100 basis points to SOFR plus the applicable spread for the quarter. The change in interest rates on our debt and Tax Receivable Agreement liability did not have a material effect on our financial position or results of operations.

Recent Accounting Guidance Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for our fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. We are currently evaluating the effect of adopting ASU 2023-07 on our disclosures.

In December 2023, the FASB issued 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures to enhance income tax information primarily through changes in the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated statements and related disclosures.

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Acquisitions

9 Months Ended

Nov. 30, 2023

Business Combinations [Abstract]

Acquisitions

3. Acquisitions

Logistyx Acquisition

On March 2, 2022, E2open, LLC, our subsidiary, acquired all of the issued and outstanding membership interests of Logistyx for a purchase price of $185 million, including $90 million paid in cash at closing (Logistyx Acquisition). An additional $95 million, which was subject to standard working capital adjustments and other contractual provisions, was paid in two installments on May 31, 2022 and September 1, 2022. The May 31, 2022 payment of $37.4 million was paid in cash. On September 1, 2022, E2open, LLC made a cash payment of $54.0 million to Logistyx as the final installment payment for the Logistyx Acquisition which reflected a working capital adjustment of $3.6 million. An additional payment of $1.1 million for working capital was made to Logistyx on December 5, 2022.

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
Working capital adjustment		(2,550	)
Estimated consideration paid for the Logistyx Acquisition	$	180,806

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

($ in thousands)	Final Purchase Price Allocation
Cash and cash equivalents	$	1,563
Account receivable, net		5,332
Other current assets		3,335
Property and equipment, net		144
Intangible assets		66,800
Goodwill (1)		123,746
Non-current assets		619
Accounts payable		(5,897	)
Current liabilities		(3,931	)
Deferred revenue (2)		(10,747	)
Non-current liabilities		(158	)
Total assets acquired and liabilities assumed	$	180,806

(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 was 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.

The fair value of the intangible assets was 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.

We incurred $4.1 million of expenses directly related to the Logistyx Acquisition through February 28, 2023 which are included in acquisition-related expenses 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 in acquisition-related advisory fees and other expenses related to the Logistyx Acquisition on behalf of Logistyx, which were accounted for as part of the purchase price consideration.

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Accounts Receivable

9 Months Ended

Nov. 30, 2023

Receivables [Abstract]

Accounts Receivable

4. Accounts Receivable

Accounts receivable, net consisted of the following:

($ in thousands)	November 30, 2023			February 28, 2023
Accounts receivable	$	110,510		$	153,618
Unbilled receivables		23,138			25,481
Less: Allowance for credit losses		(6,318	)		(4,290	)
Accounts receivable, net	$	127,330		$	174,809

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.

Account balances are written off against the allowance for credit losses when we believe that it is probable that the receivable balance will not be recovered.

The allowance for credit losses was comprised of the following:

($ in thousands)	Amount
Balance, February 28, 2022	$	(3,055	)
Logistyx Acquisition		(267	)
Additions		(2,185	)
Write-offs		1,217
Balance, February 28, 2023		(4,290	)
Additions		(4,276	)
Write-offs		2,248
Balance, November 30, 2023	$	(6,318	)

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Prepaid and Other Current Assets

9 Months Ended

Nov. 30, 2023

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

Prepaid and Other Current Assets

5. Prepaid and Other Current Assets

Prepaid expenses and other current assets consisted of the following:

($ in thousands)	November 30, 2023		February 28, 2023
Prepaid software and hardware license and maintenance fees	$	9,576	$	9,103
Income and other taxes receivable		4,647		4,618
Prepaid insurance		1,800		1,337
Deferred commissions		6,498		4,771
Prepaid marketing		1,022		1,037
Security deposits		1,109		2,377
Other prepaid expenses and other current assets		5,831		1,957
Total prepaid expenses and other current assets	$	30,483	$	25,200

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

9 Months Ended

Nov. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

6. Goodwill

We test goodwill for impairment on an annual basis or whenever events or changes occur that would more-likely-than not reduce the fair value of a reporting unit below its carrying value between annual impairment tests. As we have only one reporting unit, any goodwill impairment assessment is performed at the Company level.

During the first quarter of fiscal 2024, third quarter of fiscal 2024 and the second quarter of fiscal 2023, the market price of our Class A Common Stock and market capitalization declined significantly. These declines resulted in us determining that triggering events occurred and interim goodwill impairment assessments were performed.

The fair value of E2open was calculated using an equally weighted combination of three different methods: discounted cash flow method, guideline public company method and guideline transaction method. The discounted cash flow method was based on the present value of estimated future cash flows which were based on management's estimates of projected net sales, net operating income margins and terminal growth rates, 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 projected cash flows. Under the guideline public company method, the fair value was based on our current and forward-looking earnings multiples using management's estimates of projected net sales and adjusted EBITDA margins with consideration of market premiums. The unobservable inputs used to measure the fair value included projected net sales, forecasted adjusted EBITDA margins, weighted average cost of capital, normalized working capital level, capital expenditures assumptions, profitability projections, 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 E2open taking into consideration management's estimate of projected net sales and net operating income margins.

During the first and third quarters of fiscal 2024, we lowered our projections for net sales and net operating margins due to lower than anticipated new bookings, lower variable delivery fees, higher than expected churn and macroeconomic impacts primarily in the technology, freight and transportation sectors.

The three approaches generated similar results and indicated that the fair value of E2open's equity and goodwill was less than its carrying amount for the interim assessments. Therefore, during the three months ended November 30, 2023, we recognized a goodwill impairment charge of $687.7 million. We did not recognize a goodwill impairment charge during the three months ended November 30, 2022. We recognized a goodwill impairment charge of $1,097.7 million and $514.8 million during the nine months ended November 30, 2023 and 2022, respectively.

The following table presents the changes in goodwill:

($ in thousands)	Amount
Balance, February 28, 2022	$	3,756,871
BluJay Acquisition adjustment (1)		(5,455	)
Logistyx Acquisition (2)		123,746
Impairment charge		(901,566	)
Disposition (3)		(1,306	)
Currency translation adjustment		(44,483	)
Balance, February 28, 2023		2,927,807
Impairment charge		(1,097,741	)
Currency translation adjustment		16,197
Balance, November 30, 2023	$	1,846,263

(1)Represents the goodwill acquired in the BluJay Acquisition as of September 1, 2021 and subsequent purchase price adjustments.

(2)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.

(3)Represents the goodwill that was sold as part of the subsidiary disposition in February 2023.

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Intangible Assets, Net

9 Months Ended

Nov. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

7. Intangible Assets, Net

We test our indefinite-lived intangible asset for impairment on an annual basis or whenever events or changes occur that would more-likely-than not reduce the fair value of the indefinite-lived intangible asset below its carrying value between annual impairment tests. As we have only one reporting unit, any indefinite-lived intangible asset assessment is performed at the Company level.

During the first and third quarters of fiscal 2024, 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 indefinite-lived intangible asset impairment assessment was performed.

During the first and third quarters of fiscal 2024, we lowered our projections for net sales and net operating margins due to lower than anticipated new bookings, lower variable delivery fees, higher than expected churn and macroeconomic impacts primarily in the technology, freight and transportation sectors.

The fair value of the indefinite-lived intangible asset was calculated using the relief from royalty payments method which is based on management's estimates of projected net sales and terminal growth rates, taking into consideration market and industry conditions. The royalty rate used was based on royalty rates of companies with similar characteristics to E2open. 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 projected net sales.

The interim assessment indicated that the fair value of E2open's indefinite-lived intangible asset was less than its carrying amount; therefore, in the three and nine months ended November 30, 2023, we recognized an impairment charge of $30.0 million and $34.0 million to intangible assets, net, respectively, for the indefinite-lived trademark / trade name.

We did not record an indefinite-lived intangible asset impairment charge for the three and nine months ended November 30, 2022.

Intangible assets, net consisted of the following:

	November 30, 2023
($ in thousands)	Weighted Average Useful Life	Cost		Accumulated Amortization			Net
Indefinite-lived:
Trademark / Trade name	Indefinite	$	76,000	$	—		$	76,000
Definite-lived:
Client relationships	13.7		503,157		(175,617	)		327,540
Technology	7.3		692,142		(245,485	)		446,657
Content library	10.0		50,000		(14,122	)		35,878
Trade name	1.0		3,993		(3,993	)		—
Backlog	2.5		800		(560	)		240
Total definite-lived			1,250,092		(439,777	)		810,315
Total intangible assets		$	1,326,092	$	(439,777	)	$	886,315

	February 28, 2023
($ in thousands)	Weighted Average Useful Life	Cost		Accumulated Amortization			Net
Indefinite-lived:
Trademark / Trade name	Indefinite	$	110,000	$	—		$	110,000
Definite-lived:
Client relationships	13.8		500,975		(118,520	)		382,455
Technology	7.3		688,739		(170,178	)		518,561
Content library	10.0		50,000		(10,372	)		39,628
Trade name	1.0		3,843		(3,843	)		—
Backlog	2.5		800		(320	)		480
Total definite-lived			1,244,357		(303,233	)		941,124
Total intangible assets		$	1,354,357	$	(303,233	)	$	1,051,124

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

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 $44.6 million and $44.4 million for the three months ended November 30, 2023 and 2022, respectively. We recorded amortization expense related to intangible assets of $134.1 million and $136.4 million for the nine months ended November 30, 2023 and 2022, respectively.

Future amortization of intangible assets is as follows as of November 30, 2023:

($ in thousands)	Amount
December 2023 - February 2024	$	44,857
2025		148,332
2026		117,238
2027		117,238
2028		92,306
Thereafter		290,344
Total future amortization	$	810,315

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Property and Equipment, Net

9 Months Ended

Nov. 30, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

8. Property and Equipment, Net

Property and equipment, net consisted of the following:

($ in thousands)	November 30, 2023			February 28, 2023
Computer equipment	$	61,961		$	52,296
Software		27,054			26,430
Software development costs		49,236			35,631
Furniture and fixtures		3,262			3,032
Leasehold improvements		9,313			9,203
Gross property and equipment		150,826			126,592
Less accumulated depreciation and amortization		(80,802	)		(54,116	)
Property and equipment, net	$	70,024		$	72,476

Computer equipment and software include assets held under financing leases. Amortization of assets held under financing leases is included in depreciation expense. See Note 24, Leases for additional information regarding our financing leases.

Depreciation expense was $9.0 million and $8.1 million for the three months ended November 30, 2023 and 2022, respectively. Depreciation expense was $26.7 million and $23.4 million for the nine months ended November 30, 2023 and 2022, respectively.

We recognized $2.4 million and $1.4 million of amortized capitalized software development costs for the three months ended November 30, 2023 and 2022, respectively, and $6.7 million and $3.6 million for the nine months ended November 30, 2023 and 2022, respectively.

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Investments

9 Months Ended

Nov. 30, 2023

Schedule of Investments [Abstract]

Investments

9. Investments

In February and May 2022, we made minority investments of $2.5 million each in a private firm focused on supply chain financing for a total investment of $5.0 million. We incurred $0.5 million of transaction fees related to this investment in May 2022.

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 have been 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

9 Months Ended

Nov. 30, 2023

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities

10. Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consisted of the following:

($ in thousands)	November 30, 2023		February 28, 2023
Accrued compensation	$	31,589	$	40,365
Accrued severance and retention		1,071		937
Trade accounts payable		29,719		32,859
Accrued litigation		1,690		400
Accrued professional services		3,897		3,346
Restructuring liability		146		213
Interest payable		—		5,324
Client deposits		2,630		2,574
Tax receivable agreement liability		1,691		—
Other		10,763		11,473
Total accounts payable and accrued liabilities	$	83,196	$	97,491

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Tax Receivable Agreement

9 Months Ended

Nov. 30, 2023

Tax Receivable Agreement [Abstract]

Tax Receivable Agreement

11. Tax Receivable Agreement

E2open Holdings entered into a 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 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 expire 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 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 we are 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 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 at the Closing Date. 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 Combinations, and relevant tax law, we 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, is revalued at the end of each reporting period with the gain or loss as well as the associated interest reflected in the gain (loss) from change in tax receivable agreement liability in the Condensed Consolidated Statements of Operations in the period in which the event occurred. Interest accrued on the Tax Receivable Agreement liability at a rate of LIBOR plus 100 basis points through June 30, 2023. As of July 1, 2023, interest accrues at SOFR plus the applicable spread for the quarter. In addition, under ASC 450, Contingencies, transactions with partnership unit holders after the acquisition date result in additional Tax Receivable Agreement liabilities that are recorded on a gross undiscounted basis. These transactions, such as a conversion of Common Units to Class A Common Stock, result in a change in the Tax Receivable Agreement liability and a charge to equity.

The Tax Receivable Agreement liability was $61.4 million and $69.7 million as of November 30, 2023 and February 28, 2023, respectively, which represents the current and long-term portion of the liability. The determination of current and long-term is based on management's estimate of taxable income for the fiscal year and the determination that a Tax Receivable Agreement payment is due and payable within the next twelve months. To the extent the estimate differs from actual results, a reclass may be required for portions of the Tax Receivable Agreement liability between current and long-term.

The tax rate used in the calculation was 24.2% as of November 30, 2023 and February 28, 2023. The discount rate used for the ASC 805 calculation was 10.0% and 9.7% as of November 30, 2023 and February 28, 2023, respectively, based on the cost of debt plus an incremental premium. During the three months ended November 30, 2023 and 2022, a gain of $2.9 million and $2.7 million, respectively, was recorded as a change in the tax receivable agreement liability related to the ASC 805 discounted liability. During the nine months ended November 30, 2023 and 2022, a gain of $8.4 million and a gain of $9.1 million, respectively, was recorded as a change in the tax receivable agreement liability related to the ASC 805 discounted liability. During the nine months ended November 30, 2023 and 2022, the Tax Receivable Agreement liability under ASC 450 increased by a negligible amount and $0.7 million, respectively, related to exchanges of Common Units for Class A Common Stock with a corresponding charge to equity. No payments have been made to any Tax Receivable Agreement holders of E2open Holdings as of November 30, 2023.

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Notes Payable

9 Months Ended

Nov. 30, 2023

Debt Disclosure [Abstract]

Notes Payable

12. Notes Payable

Notes payable outstanding were as follows:

($ in thousands)	November 30, 2023			February 28, 2023
2021 Term Loan	$	1,069,978		$	1,078,200
Other notes payable		347			492
Total notes payable		1,070,325			1,078,692
Less unamortized debt issuance costs		(20,295	)		(23,912	)
Total notes payable, net		1,050,030			1,054,780
Less current portion		(11,122	)		(11,144	)
Notes payable, less current portion, net	$	1,038,908		$	1,043,636

2021 Term Loan and Revolving Credit Facility

In February 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. In September 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. In April 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 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 payments 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 interest rates applicable to borrowings under the Credit Agreement are, at E2open, LLC’s option, either (1) a base rate, which is equal to the greater of (a) the Prime rate, (b) the Federal Reserve Bank of New York rate plus 0.5% and (c) the adjusted Eurocurrency Rate for a one month interest period plus 1% or (2) the adjusted Eurocurrency rate equal to the adjusted Eurocurrency rate for the applicable interest period multiplied by the statutory reserve rate, plus in the case of each of clauses (1) and (2), the Applicable Rate. The Applicable Rate (1) for base rate term loans ranges from 2.25% to 2.50% per annum, (2) for base rate revolving loans ranges from 1.50% to 2.00% per annum, (3) for Eurodollar term loans ranges from 3.25% to 3.50% per annum and (4) for Eurodollar revolving loans ranges from 2.50% to 3.00% per annum, in each case, based on the first lien leverage ratio. E2open, LLC will pay a commitment fee during the term of the Credit Agreement ranging from 0.25% to 0.375% per annum of the average daily undrawn portion of the revolving commitments based on the First Lien Leverage Ratio which represents the ratio of the Company’s secured consolidated total indebtedness to the Company’s consolidated EBITDA as specified in the Credit Agreement.

Beginning July 1, 2023, the Eurocurrency Rate ceased to be applicable and was replaced by the SOFR Rate. The adjusted SOFR Rate shall be the SOFR Rate plus 0.11448% for a one-month interest rate loan, 0.26161% for a three-month interest rate loan and 0.42826% for a six-month interest rate loan. The Applicable Rate for SOFR Rate term loans shall range from 3.25% to 3.50% and revolving loans shall range from 2.50% to 3.00% based on the first lien leverage ratio. We can also borrow using a SONIA Rate. The Applicable Rate for SONIA Rate revolving loans shall range from 2.50% to 3.00%.

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 November 30, 2023 and February 28, 2023, there were $1,070.0 million and $1,078.2 million outstanding under the 2021 Term Loan, respectively, at an interest rate of 8.96% and 8.08%, respectively. The interest rates on the 2021 Term Loan were based on SOFR plus 350 basis points and LIBOR plus 350 basis points as of November 30, 2023 and February 28, 2023, 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 November 30, 2023 and February 28, 2023.

We were in compliance with the First Lien Leverage Ratio for the Credit Agreement as of November 30, 2023 and February 28, 2023.

Beginning in March 2023, we entered into zero-cost interest rate collars in the notional amount of $300.0 million to hedge our exposure to fluctuations in interest rates on the variable rate debt on a portion of our 2021 Term Loan. See Note 14, Financial Instruments for additional information.

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Contingent Consideration

9 Months Ended

Nov. 30, 2023

Contingent Consideration [Abstract]

Contingent Consideration

13. Contingent Consideration

Business Combination

The contingent consideration liability is due to the issuance of Series B-2 common stock 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 is remeasured at each reporting date and adjusted if necessary. Any gain or loss recognized from the remeasurement is recorded in gain (loss) from the change in fair value of contingent consideration on the Condensed Consolidated Statements of Operations as nonoperating income (expense) as the change in fair value is not part of our core operating activities.

The contingent consideration liability was $14.2 million and $29.5 million as of November 30, 2023 and February 28, 2023, respectively. The fair value remeasurements resulted in a gain of $5.1 million and $6.3 million for the three months ended November 30, 2023 and 2022, respectively. The fair value remeasurements resulted in a gain of $15.4 million and $17.8 million for the nine months ended November 30, 2023 and 2022, respectively.

There were 3,372,184 shares of Series B-2 common stock outstanding as of November 30, 2023 and February 28, 2023. The Series B-2 common stock will automatically convert into 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. If any of the Series B-2 common stock does not vest on or before the 10-year anniversary of the Closing Date, such common stock will be canceled for no consideration.

There were 2,627,724 shares of Series 2 RCUs outstanding as of November 30, 2023 and February 28, 2023. 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 or (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.

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Financial Instruments

9 Months Ended

Nov. 30, 2023

Investments, All Other Investments [Abstract]

Financial Instruments

14. Financial Instruments

Cash Flow Hedging Activities

Foreign Exchange Forward Contracts

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 rupees. We have not hedged our exposure to revenue or expenses in other currencies.

As of November 30, 2023, our foreign exchange forward contracts have durations of approximately 9 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 estimated fair values of the foreign currency forward contracts:

($ in thousands)	November 30, 2023			February 28, 2023
Accounts payable and accrued liabilities	$	(127	)	$	(659	)
Other noncurrent liabilities		—			(197	)

We estimate the $0.1 million, net of tax, of losses on forward exchange currency derivatives instruments included in other comprehensive loss will be settled and reclassified into earnings within the next twelve months.

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 November 30, 2023, all of the foreign exchange forward contracts are in a liability position.

Interest Rate Collar Agreements

Our interest rate collar agreements (Collars) are designed and qualify as cash flow hedges. The Collars help manage our exposure to fluctuations in interest rates on the variable rate debt on a portion of our 2021 Term Loan. Changes in the fair value of the Collars designated as cash flow hedges will be recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and settled to interest expense over the term of the contracts.

On March 17, 2023, we entered into a Collar, effective March 31, 2023, with a notional amount of $200.0 million and a maturity date of March 31, 2026. The executed cap was 4.75% and the floor was 2.57%. On March 24, 2023, an additional Collar was executed, effective April 6, 2023, with a notional amount of $100.0 million and a maturity date of March 31, 2026. The executed cap was 4.50% and the floor was 2.56%. For both Collars, the cap and floor interest rates are based on LIBOR through July 31, 2023 and SOFR beginning July 31, 2023 through the respective maturity dates. The structure of the Collars is such that we receive an incremental amount if the Collar index exceeds the cap rate. Conversely, we pay an incremental amount if the Collar index falls below the floor rate. No payments are required if the Collar index falls between the cap and floor rates.

The following table represents the Condensed Consolidated Balance Sheets location and estimated fair value of the Collars:

($ in thousands)	Notional		November 30, 2023
Prepaid expenses and other current assets	$	200,000	$	401
Other noncurrent assets		200,000		535
Prepaid expenses and other current assets		100,000		332
Other noncurrent assets		100,000		443

We report our Collar 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 with the counterparty to the Collars. The agreement allows for multiple transaction payment netting and none of the netting arrangements involve collateral.

See Note 21, Other Comprehensive Loss for additional information regarding our cash flow hedges.

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Fair Value Measurement

9 Months Ended

Nov. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Fair Value Measurement

15. Fair Value Measurement

Our financial instruments include cash and cash equivalents; investments; accounts receivable, net; accounts payable; notes payable; and financing lease obligations. Accounts receivable, net; and accounts payable 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. Certificates of deposit are valued at original cost plus accrued interest, which approximates fair value. 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 November 30, 2023 and February 28, 2023, the fair value of the cash and cash equivalents, restricted cash, certificates of deposit, 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
November 30, 2023
Asset-backed securities	$	162	$	47	$	—	$	209
February 28, 2023
Asset-backed securities	$	162	$	35	$	—	$	197

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:

	November 30, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Asset-backed securities	$	—	$	209	$	—	$	209
Total investments		—		209		—		209
Other assets:
Interest rate collar agreements		—		1,711		—		1,711
Total other assets		—		1,711		—		1,711
Total assets	$	—	$	1,920	$	—	$	1,920
Liabilities:
Forward currency contracts	$	—	$	127	$	—	$	127
Cash-settled restricted stock units		16		—		—		16
Tax receivable agreement liability		—		—		44,799		44,799
Warrant liability		7,900		—		2,930		10,830
Contingent consideration		—		—		14,188		14,188
Total liabilities	$	7,916	$	127	$	61,917	$	69,960

	February 28, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Asset-backed securities	$	—	$	197	$	—	$	197
Total investments		—		197		—		197
Total assets	$	—	$	197	$	—	$	197
Liabilities:
Forward currency contracts	$	—	$	856	$	—	$	856
Cash-settled stock units		21		—		—		21
Tax receivable agreement liability		—		—		53,154		53,154
Warrant liability		16,920		—		12,696		29,616
Contingent consideration		—		—		29,548		29,548
Total liabilities	$	16,941	$	856	$	95,398	$	113,195

Cash-Settled Restricted Stock Units

Cash-settled restricted stock units (RSUs) form part of our compensation program. The fair value of these awards is determined using the closing stock price of our Class A Common Stock on the last day of each balance sheet date which is considered an observable quoted market price in active markets (Level 1).

Contingent Consideration

The following table provides a reconciliation of the beginning and ending balances of the contingent consideration using significant unobservable inputs (Level 3):

($ in thousands)	November 30, 2023			February 28, 2023
Beginning of period	$	29,548		$	45,568
Gain from fair value of contingent consideration		(15,360	)		(16,020	)
End of period	$	14,188		$	29,548

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:

($ in thousands)	November 30, 2023			February 28, 2023
Beginning of period	$	53,154		$	50,268
(Gain) loss from fair value of tax receivable agreement liability		(8,355	)		2,886
End of period	$	44,799		$	53,154

The change in the fair value of the tax receivable agreement liability is recorded in gain (loss) from 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:

($ in thousands)	November 30, 2023			February 28, 2023
Beginning of period	$	29,616		$	67,139
Gain from fair value of warrant liability		(18,786	)		(37,523	)
End of period	$	10,830		$	29,616

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 daily market foreign currency rates, interest rate curves and quoted market prices for comparable instruments or model-driven valuations using observable market data or inputs corroborated by observable market data.

Our contingent consideration is valued using a Monte Carlo simulation model. The assumptions used in preparing this model include estimates such as volatility, contractual terms, discount rates, dividend yield and risk-free interest rates. This valuation model uses unobservable market input, and therefore the liability is 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 were 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.

There were no transfers of financial instruments between the levels of the fair value hierarchy during the three and nine months ended November 30, 2023 and 2022.

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Revenue

9 Months Ended

Nov. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

16. 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 November 30,				Nine Months Ended November 30,
($ in thousands)	2023		2022		2023		2022
Americas	$	133,018	$	139,468	$	401,842	$	410,100
Europe		19,404		20,120		58,678		59,049
Asia Pacific		5,075		5,305		15,585		16,801
Total revenue	$	157,497	$	164,893	$	476,105	$	485,950

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 84% and 83% during the three months ended November 30, 2023 and 2022, respectively, and 84% and 83% during the nine months ended November 30, 2023 and 2022. No other country represented more than 10% of total revenue during these periods.

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 November 30, 2023 and February 28, 2023, approximately $806.0 million and $779.6 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 $23.1 million and $25.5 million as of November 30, 2023 and February 28, 2023, 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 $179.1 million and $206.3 million as of November 30, 2023 and February 28, 2023, respectively. Revenue recognized during the three and nine months ended November 30, 2023, included in deferred revenue on the Condensed Consolidated Balance Sheets as of February 28, 2023, was $19.6 million and $156.3 million, respectively.

Sales Commissions

With the adoption of ASC 606 and ASC 340-40, Contracts with Customers, in March 2019, we began deferring and amortizing sales commissions that are incremental and directly related to obtaining client contracts. Amortization expense of $1.7 million and $1.0 million was recorded in sales and marketing expenses in the Condensed Consolidated Statements of Operations for the three months ended November 30, 2023 and 2022, respectively. Amortization expense of $4.5 million and $2.9 million was recorded in sales and marketing expenses for the nine months ended November 30, 2023 and 2022, respectively. Certain sales commissions that would have an amortization period of less than a year are expensed as incurred in sales and marketing expenses. As of November 30, 2023 and February 28, 2023, we had a total of $19.7 million and $16.0 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

9 Months Ended

Nov. 30, 2023

Restructuring and Related Activities [Abstract]

Severance and Exit Costs

17. 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, cancellation of lease obligations related to properties that were vacated and other cost-saving measures. Severance and exit costs included in acquisition-related expenses in the Condensed Consolidated Statements of Operations were as follows:

	Three Months Ended November 30,					Nine Months Ended November 30,
($ in thousands)	2023			2022		2023			2022
Severance	$	(9	)	$	534	$	350		$	4,224
Lease exits		—			81		(38	)		316
Total severance and exit costs	$	(9	)	$	615	$	312		$	4,540

Included in accounts payable and accrued liabilities as of November 30, 2023 and February 28, 2023 was a restructuring liability balance, primarily consisting of lease related obligations, of $0.1 million and $0.2 million, respectively, and a restructuring severance liability of $1.1 million and $0.9 million, respectively. 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:

($ in thousands)	November 30, 2023			February 28, 2023
Beginning of period	$	1,150		$	2,687
Payments		(3,679	)		(6,225	)
Impairment of right-of-use assets		—			(421	)
Disposition (1)		—			(162	)
Expenses		3,746			5,271
End of period	$	1,217		$	1,150

(1)Represents the severance and retention accrual that was written off as part of the subsidiary disposition in February 2023.

Accrued severance includes activity related to the pre- and post-acquisition related operational reviews (acquisition related severance) as well as various departmental cost cutting initiatives resulting in severance awards to specific individuals that are not under a specific Company program (non-acquisition related severance). The non-acquisition related severance payments are accrued in both accrued severance and accrued compensation. Total severance expense, including both acquisition and non-acquisition related severance payments, for the three months ended November 30, 2023 and 2022 was a $4.4 million and $1.0 million, respectively, and for the nine months ended November 30, 2023 and 2022 was $7.9 million and $5.7 million, respectively.

With the departure of our former Chief Operating Officer on September 27, 2023 and Chief Executive Officer on October 10, 2023, we accrued a severance payment of $0.9 million and $1.3 million, respectively. Both of these severance payments were paid during the third quarter of fiscal 2024.

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Warrants

9 Months Ended

Nov. 30, 2023

Warrants and Rights Note Disclosure [Abstract]

Warrants

18. Warrants

As of November 30, 2023 and February 28, 2023, there were an aggregate of 29,079,872 warrants outstanding. Each warrant entitles its holders to purchase one share of Class A Common Stock at an exercise price of $11.50 per share. The warrants expire five years after the Closing Date, or earlier upon redemption or liquidation. The warrants are currently exercisable and redeemable 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 $10.8 million and $29.6 million as of November 30, 2023 and February 28, 2023, respectively. During the three months ended November 30, 2023 and 2022, a gain of $2.6 million and $16.2 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 nine months ended November 30, 2023 and 2022, a gain of $18.8 million and $36.8 million was recognized in gain (loss) from change in fair value of the warrant liability, respectively.

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Stockholders' Equity

9 Months Ended

Nov. 30, 2023

Stockholders' Equity Note [Abstract]

Stockholders' Equity

19. 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 November 30, 2023 and February 28, 2023, there were 304,564,709 and 302,582,007 shares of Class A Common Stock issued, respectively, and 304,388,055 and 302,405,353 shares of Class A Common Stock outstanding, respectively.

Class V Common Stock

We are authorized to issue 42,747,890 Class V common stock with a par value of $0.0001 per share. These shares have no economic value but entitle the holder to one vote per share. As of November 30, 2023 and February 28, 2023, there were 32,722,920 and 32,992,007 shares of Class V Common Stock issued and outstanding, respectively, and 10,024,970 and 9,755,883 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, 2023		302,405,353		32,992,007			94		3,372,184
Conversion of Common Units (1)		269,087		(269,087	)		—		—
Issuance of common stock pursuant to stock-based     awards (2)		408,881		—			—		—
Vesting of restricted awards, net of shares     withheld for taxes (3)		1,304,734		—			—		—
Balance, November 30, 2023		304,388,055		32,722,920			94		3,372,184

(1)Class A Common Stock issued for the conversion of Common Units settled in stock. 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)Issuance of Class A Common Stock associated with the restricted stock award grants.

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

See Note 28, Subsequent Events for information related to Common Units converted to Class A Common Stock after November 30, 2023.

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Noncontrolling Interests

9 Months Ended

Nov. 30, 2023

Noncontrolling Interest [Abstract]

Noncontrolling Interests

20. Noncontrolling Interest

Noncontrolling interest represents the portion of E2open Holdings that we control and consolidate but do not own. As of November 30, 2023 and February 28, 2023, the noncontrolling interest represents a 9.7% and 9.8% ownership in E2open Holdings, respectively. As part of the Business Combination, E2open Parent Holdings, Inc. became the owner of E2open Holdings along with the existing owners of E2open Holdings through Common Unit ownership. The existing owners of E2open Holdings are shown as noncontrolling interest on the Condensed Consolidated Balance Sheets and their portion of the net income (loss) of E2open Holdings is shown as net income (loss) attributable to noncontrolling interest on the Condensed Consolidated Statements of Operations.

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 Third Amended and Restated Limited Liability Company Agreement of E2open, LLC (Third Company 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 and nine months ended November 30, 2023, there were 269,087 Common Units converted into Class A Common Stock with a value of $0.8 million based off the 5-day VWAP. This activity resulted in a decrease to noncontrolling interests of $0.8 million during the three and nine months ended November 30, 2023.

During the three months ended November 30, 2022, 100,000 Common Units were converted into Class A Common Stock with a value of $0.6 million based off the 5-day VWAP. During the nine months ended November 30, 2022, 249,941 Common Units were converted into Class A Common Stock with a value of $1.8 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 nine months ended November 30, 2022. This activity resulted in a decrease to noncontrolling interests of $0.6 million and $3.2 million during the three and nine months ended November 30, 2022, respectively.

As of November 30, 2023 and February 28, 2023, there were a total of 32.7 million and 33.0 million Common Units held by participants of E2open Holdings.

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.

See Note 28, Subsequent Events for information related to Common Units converted after November 30, 2023.

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Other Comprehensive Loss

9 Months Ended

Nov. 30, 2023

Statement of Other Comprehensive Income [Abstract]

Other Comprehensive Loss

21. Other Comprehensive Loss

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

($ in thousands)	Foreign Currency Translation Adjustment			Unrealized Holding (Losses) Gains on Foreign Exchange Forward Contracts			Unrealized Holding Gains on Interest Rate Collar Agreements		Total
Balance, February 28, 2023	$	(67,747	)	$	(856	)	$	—	$	(68,603	)
Other comprehensive gain		20,271			729			1,711		22,711
Other comprehensive gain		20,271			729			1,711		22,711
Balance, November 30, 2023	$	(47,476	)	$	(127	)	$	1,711	$	(45,892	)

There were no income taxes recorded to other comprehensive loss during the three or nine months ended November 30, 2023.

The effect of amounts reclassified out of unrealized holding losses for foreign exchange forward contracts into net loss was as follows:

	Three Months Ended November 30,				Nine Months Ended November 30,
($ in thousands)	2023		2022		2023		2022
Reclassifications:
Cost of revenue	$	36	$	105	$	127	$	105
Research and development		35		94		119		94
Sales and marketing		2		3		6		3
General and administrative		15		48		53		48
Total	$	88	$	250	$	305	$	250

The effect of amounts reclassified out of unrealized gains for interest rate collars as an offset to interest expense was as follows:

	Three Months Ended			Nine Months Ended
($ in thousands)	November 30, 2023			November 30, 2023
Reclassifications:
$100 million notional interest rate collar	$	(208	)	$	(463	)
$200 million notional interest rate collar		(290	)		(596	)
Total	$	(498	)	$	(1,059	)

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

See Note 14, Financial Instruments for additional information related to our derivative instruments.

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Earnings Per Share

9 Months Ended

Nov. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

22. Earnings Per Share

Basic earnings per share is calculated as net (loss) income available to common stockholders divided by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share is computed by using the basic earnings per share plus any dilutive securities outstanding during the period using the if-converted method, except when the effect is anti-dilutive. The following is a reconciliation of the denominators of the basic and diluted per share computations for net (loss) income:

	Three Months Ended November 30,					Nine Months Ended November 30,
(in thousands, except per share data)	2023			2022		2023			2022
Net loss per share:
Numerator - basic:
Net (loss) income per share:	$	(740,031	)	$	5,503	$	(1,139,544	)	$	(416,703	)
Less: Net (loss) income attributable to noncontrolling     interests		(72,475	)		698		(111,721	)		(41,464	)
Net (loss) income attributable to E2open Parent     Holdings, Inc. - basic	$	(667,556	)	$	4,805	$	(1,027,823	)	$	(375,239	)
Numerator - diluted:
Net (loss) income attributable to E2open Parent     Holdings, Inc. - basic	$	(667,556	)	$	4,805	$	(1,027,823	)	$	(375,239	)
Net (loss) income attributable to E2open Parent     Holdings, Inc. - diluted	$	(667,556	)	$	4,805	$	(1,027,823	)	$	(375,239	)
Denominator - basic:
Weighted average shares outstanding - basic		303,848			302,201		303,188			301,822
Net (loss) income per share - basic	$	(2.20	)	$	0.02	$	(3.39	)	$	(1.24	)
Denominator - diluted:
Weighted average shares outstanding - basic		303,848			302,201		303,188			301,822
Weighted average effect of dilutive securities:
Time based restricted stock		—			158		—			—
Weighted average shares outstanding - diluted		303,848			302,359		303,188			301,822
Diluted net (loss) income per common share	$	(2.20	)	$	0.02	$	(3.39	)	$	(1.24	)

Potential common shares are shares that would be issued upon exercise or conversion of shares under our share-based compensation plans and upon exercise of warrants that 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 November 30,				Nine Months Ended November 30,
	2023		2022		2023		2022
Series B-1 common stock		94		94		94		94
Series B-2 common stock		3,372,184		3,372,184		3,372,184		3,372,184
Restricted common units Series 2		2,627,724		2,627,724		2,627,724		2,627,724
Warrants		29,079,872		29,079,872		29,079,872		29,079,872
Common Units		32,879,559		33,126,073		32,954,797		33,350,756
Performance-based options		1,334,919		4,832,802		1,215,252		3,986,158
Time-based options		1,038,513		—		901,246		—
Performance-based restricted stock units		3,837,349		2,101,221		3,514,740		2,059,595
Time-based restricted stock units		8,449,869		2,303,641		9,778,141		2,404,272
Time-based restricted stock awards		187,824		—		408,881		—
Units/Shares excluded from the dilution     computation		82,807,907		77,443,611		83,852,931		76,880,655

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Share-Based Compensation

9 Months Ended

Nov. 30, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

23. Share-Based Compensation

2021 Incentive Plan

The E2open Parent Holdings, Inc. 2021 Omnibus Incentive Plan (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 and 2023, an additional 4,849,684 shares and 7,304,646 shares were reserved for issuance under the "evergreen " provision, respectively. 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, except under limited conditions.

Our board of directors, or its expressly approved delegees, have approved the grant of options, RSUs and restricted stock awards (RSAs) under the 2021 Incentive Plan.

Options

Options are either performance-based or time-based. The fiscal year 2022 options were performance-based and measured based on obtaining an organic growth target over a one-year period. The fiscal year 2023 options were performance-based and measured based on obtaining organic growth, adjusted EBITDA and net booking targets over a one-year period. A quarter of the options vest at the end of the performance period and the remaining options will vest equally over the following three years. The fiscal year 2024 options are time-based with one-third of the options vesting at the end of the first year with the remaining options vesting ratably each quarter over the remaining two-years.

Our executive officers and senior management are granted these performance-based and time-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. The performance target for the options granted in May 2022 was finalized in April 2023 below 100% and adjusted accordingly.

As of November 30, 2023, there were 1,215,252 unvested performance-based options and 901,246 unvested time-based options.

RSUs

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. The fiscal year 2023 performance-based RSUs were measured based on obtaining an organic growth, adjusted EBITDA and net bookings target over a one-year period. The fiscal year 2024 performance-based RSUs are measured based on obtaining an organic subscription revenue growth, constant currency adjusted EBITDA and net bookings target over a one-year period. A quarter of the RSUs will vest at the end of the performance period and the remaining RSUs will vest 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 performance target for the performance-based RSUs granted in May 2022 was finalized in April 2023 below 100% and adjusted accordingly. The time-based RSUs for executive officers, senior management and employees granted during fiscal years 2022 and 2023 vest ratably over a three-year period. Beginning in fiscal year 2024, the time-based RSUs for executive officers, senior management and employees will vest one-third at the end of the first year and then ratably each quarter over the remaining two years. The time-based RSUs for non-employee directors of our board of directors have a one-year vesting period.

During November 2023, executive officers and senior management received retention time-based RSUs which have an eighteen-month vesting period. The total retention awards granted during November 2023 were 2,052,680. See Note 28, Subsequent Events for information regarding additional retention awards granted in December 2023.

As of November 30, 2023, there were 3,514,740 performance-based RSUs, 9,778,141 time-based RSUs and 408,881 RSAs that were unvested and expected to vest.

During fiscal 2023 and 2024, our board of directors approved a company-wide share-based compensation program under our 2021 Incentive Plan where all eligible employees received annual stock awards as part of their annual compensation package. The fiscal 2023 grant was awarded on October 1, 2022 and the fiscal 2024 grant was awarded on July 1, 2023. Future awards under this program are at the discretion of the board of directors and are not guaranteed for any fiscal year.

For employees based in China, they are awarded cash-settled RSUs which will vest ratably over a three-year period. The cash-settled RSUs must be settled in cash and are accounted for as liability-type awards. The fair value of these cash-settled RSUs equals the value of our Class A Common Stock on the date of grant and is remeasured at the end of each reporting period at fair value. The change in fair value will be recorded in share-based compensation expense in the Condensed Consolidated Statements of Operations. The liability for the cash-settled RSUs was negligible as of November 30, 2023 and is included in accounts payable and accrued liabilities in the Condensed Consolidated Balance Sheets. As of November 30, 2023, there were 37,479 unvested cash-settled RSUs with a total intrinsic value of $0.1 million.

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. All of the options expired unexercised as of August 31, 2023.

Restricted Stock Awards

RSAs are time-based and granted to participants with the associated Class A Common Stock issued on the day of grant. The Class A Common Stock are issued with restrictions and voting rights. When the applicable vesting terms have been met, the restrictions are removed from the Class A Common Stock.

Mr. Andrew Appel joined E2open as interim Chief Executive Officer on October 10, 2023. As part of his compensation, he received an initial RSA grant valued at $685,000, or 275,101 shares, under our 2021 Incentive Plan which will vest after six months of issuance. If Mr. Appel's term continues past the initial six-month period, he will receive an additional monthly RSA grant valued at $100,000 that will vest after one month of issuance.

Mr. Appel's Chief of Staff was awarded an RSA grant in November 2023 for 133,780 shares under our 2021 Incentive Plan which will vest after five months of issuance.

As of November 30, 2023, there were 9,290,911 shares of Class A Common Stock available for grant under the 2021 Incentive Plan.

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, 2023		4,833		$	8.42		8.5
Granted		1,232			4.65
Forfeited/Expired		(3,949	)		7.82
Balance, November 30, 2023		2,116		$	7.36		6.8
Vested and exercisable as of November 30, 2023		807		$	9.28		3.6

	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		(966	)		9.85
Balance, November 30, 2022		4,833		$	8.42		8.7
Vested and exercisable as of November 30, 2022		573		$	9.82		5.2

As of November 30, 2023, there was $2.6 million of unrecognized compensation cost related to unvested options. The aggregate intrinsic value of the outstanding, vested and exercisable stock option awards was zero as of November 30, 2023 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 and RSAs 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, 2023		6,475		$	8.44		2.4
Granted		12,235			5.26
Added by performance factor		39			9.02
Released		(1,968	)		8.36
Canceled and forfeited		(3,079	)		6.83
Balance, November 30, 2023		13,702		$	5.77		2.1

	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		5,645			7.45
Added by performance factor		300			12.87
Released		(870	)		12.12
Canceled and forfeited		(560	)		10.00
Balance, November 30, 2022		6,618		$	8.46		2.6

As of November 30, 2023, there was $53.2 million of unrecognized compensation cost related to unvested RSUs and RSAs. The aggregate intrinsic value of the RSUs and RSAs was $49.9 million as of November 30, 2023 which is the outstanding RSUs and RSAs valued at the closing price of our Class A Common Stock on November 30, 2023.

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

	Number of Units (in thousands)			Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Recognition Period (in years)
Balance, February 28, 2023		25		$	6.07		2.6
Granted		24			5.60
Released		(8	)		6.07
Canceled and forfeited		(4	)		5.96
Balance, November 30, 2023		37		$	5.78		2.3

	Number of Units (in thousands)		Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Recognition Period (in years)
Balance, February 28, 2022		—	$	—		—
Granted		25		6.07
Balance, November 30, 2022		25	$	6.07		2.8

As of November 30, 2023, there was $0.1 million of unrecognized compensation cost related to unvested cash-settled RSUs. The aggregate intrinsic value of the cash-settled RSUs was $0.1 million as of November 30, 2023 which is the outstanding cash-settled RSUs valued at the closing price of our Class A Common Stock on November 30, 2023.

As previously disclosed in our August 31, 2023 Form 10-Q in Item 5., Other Information, our former Chief Operating Officer entered into a Release and Non-Competition Agreement (Separation Agreement) in which he will provide transition services until December 31, 2023 (Transition Period). As a result of his departure, his options, time-based RSUs and performance-based RSUs will be prorated as of December 31, 2023. The remaining unvested awards will be accelerated at 50%. This will result in 189,039 options and 187,325 time-based and performance-based RSUs vesting as of December 31, 2023. The 2024 fiscal year performance-based RSUs will remain unvested until the performance metrics are determined in early fiscal 2025, at which point this award will accelerate and vest at 50%.

In accordance with our executive plan, our former Chief Executive Officer's options, time-based RSUs and performance-based RSUs were prorated as of his departure date, October 11, 2023, resulting in 134,920 options and 147,606 time-based and performance-based RSUs vesting. The 2024 fiscal year performance based RSUs will remain unvested until the performance metrics are determined in early fiscal 2025, at which point this award will accelerate and vest at 25%.

The estimated grant-date fair values of the options granted or modified during the nine months ended November 30, 2023 and 2022 were calculated using the Black-Scholes option-pricing valuation model, based on the following assumptions:

	Nine Months Ended November 30,
	2023	2022
Expected term (in years)	0.68 - 6.25	6.25
Expected volatility	48.97% - 56.84%	44.17%
Risk-free interest rate	3.38% - 5.30%	2.91%
Expected dividend yield	0%	0%

The assumptions and estimates were as follows:

Expected Term: The expected term represents the weighted-average period the share-based awards are expected to remain outstanding and is calculated using the simplified method, as we do not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. The simplified method calculates the expected term as the midpoint between the vesting date and the contractual expiration date of the option.

Expected Volatility: The expected stock price volatility assumption was determined based on the historical volatility of the Class A Common Stock.

Risk-Free Interest Rate: The risk-free rate assumption was based on the U.S. Treasury instruments whose term was consistent with the option's expected term.

Expected Dividend Yield: We do not currently declare or pay dividends on our common stock and do not expect to do so for the foreseeable future.

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

	Three Months Ended November 30,				Nine Months Ended November 30,
($ in thousands)	2023		2022		2023		2022
Cost of revenue	$	1,304	$	545	$	3,059	$	856
Research and development		1,665		938		4,177		2,181
Sales and marketing		1,556		901		3,444		2,560
General and administrative		2,316		2,413		8,048		7,542
Total share-based compensation	$	6,841	$	4,797	$	18,728	$	13,139

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Leases

9 Months Ended

Nov. 30, 2023

Leases [Abstract]

Leases

24. Leases

We account for leases in accordance with ASC 842, Leases, which requires lessees to recognize lease liabilities and right-of-use (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.

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 expenses in the Condensed Consolidated Statements of Operations.

Real Estate Leases

We lease our primary office spaces 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 early cancellation with proper notification. Additionally, we have five subleases of our office leases as of November 30, 2023.

Several of the operating lease agreements require us to provide security deposits. As of November 30, 2023, and February 28, 2023, lease deposits were $3.5 million and $4.7 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 three and nine months ended November 30, 2023, we incurred $0.1 million and $0.6 million impairments on our operating lease ROU assets and leasehold improvements, respectively, due to vacating four locations with the intent to sublease them. During the three and nine months ended November 30, 2022, we incurred a $1.8 million and $4.1 million impairment, respectively, on our operating lease ROU assets and leasehold improvements due to vacating three and seven locations, respectively, with the intent to sublease them. The impairments were recorded in general and administrative expenses in the Condensed Consolidated Statements of Operations.

During the second quarter of fiscal 2023, we terminated an operating lease early with a lease expiration date of February 2026. We paid an early termination fee of $0.2 million and recognized a $0.2 million gain on the write-off of the remaining ROU asset and liability. An ROU impairment was taken on this lease during August 2022.

Vehicle Leases

We lease vehicles under non-cancelable operating lease arrangements which have various expiration dates through May 2027. 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 November 2028. 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 present the amounts and classifications of our estimated ROU assets, net and lease liabilities:

($ in thousands)	Balance Sheet Location	November 30, 2023		February 28, 2023
Operating lease right-of-use assets	Operating lease right-of-use assets	$	21,580	$	18,758
Finance lease right-of-use asset	Property and equipment, net		4,175		3,358
Total right-of-use assets		$	25,755	$	22,116

($ in thousands)	Balance Sheet Location	November 30, 2023		February 28, 2023
Operating lease liability - current	Current portion of operating lease obligations	$	7,317	$	7,622
Operating lease liability	Operating lease obligations		17,959		15,379
Finance lease liability - current	Current portion of finance lease obligations		1,120		2,582
Finance lease liability	Finance lease obligations		3,188		1,049
Total lease liabilities		$	29,584	$	26,632

Lease Cost and Cash Flows

The following table summarizes our total lease cost:

	Three Months Ended November 30,						Nine Months Ended November 30,
($ in thousands)	2023			2022			2023			2022
Finance lease cost:
Amortization of right-of-use asset	$	135		$	508		$	1,319		$	1,686
Interest on lease liability		23			35			124			161
Finance lease cost		158			543			1,443			1,847
Operating lease cost:
Operating lease cost		1,722			2,239			5,452			5,505
Variable lease cost		823			510			2,674			3,810
Sublease income		(209	)		(46	)		(440	)		(482	)
Operating net lease cost		2,336			2,703			7,686			8,833
Total net lease cost	$	2,494		$	3,246		$	9,129		$	10,680

Short-term lease expense was immaterial for the three and nine months ended November 30, 2023. There was no short-term lease expense for the three and nine months ended November 30, 2022.

Supplemental cash flow information related to leases was as follows:

	Nine Months Ended November 30,
($ in thousands)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	6,378	$	7,365

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

	Nine Months Ended November 30,
	2023			2022
Weighted-average remaining lease term (in years):
Finance lease		4.14			0.69
Operating lease		3.98			3.77
Weighted-average discount rate:
Finance lease		7.66	%		9.20	%
Operating lease		6.95	%		5.43	%

Lease Liability Maturity Analysis

The following table reflects the undiscounted future cash flows utilized in the calculation of the lease liabilities as of November 30, 2023:

($ in thousands)	Operating Leases			Finance Leases
December 2023 - February 2024	$	2,315		$	391
2025		8,483			1,357
2026		6,647			1,256
2027		5,462			748
2028		3,299			748
Thereafter		2,927			561
Total		29,133			5,061
Less: Present value discount		(3,857	)		(753	)
Lease liabilities	$	25,276		$	4,308

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Income Taxes

9 Months Ended

Nov. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

25. 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 $5.4 million, or 0.7%, for the three months ended November 30, 2023 compared to $7.9 million, or 331.8%, for the three months ended November 30, 2022. Our provision for income taxes for the nine months ended November 30, 2023 was a benefit of $73.8 million, or 6.1%, compared to $130.0 million, or 23.8%, for the nine months ended November 30, 2022.

The loss before income taxes of $745.4 million and $1,213.4 million resulted in a $5.4 million and $73.8 million income tax benefit for the three and nine months ended November 30, 2023, respectively. During the three and nine months ended November 30, 2022, the loss before income tax was $2.4 million and $546.7 million resulting in a $7.9 million and $130.0 million income tax benefit, respectively. The discrete impact of the goodwill impairment taken in the first and third quarters of fiscal 2024 resulted in a $3.7 million and $67.6 million income tax benefit, net of a valuation allowance of $154.5 million and $179.9 million for the three and nine months ended November 30, 2023, respectively. The remainder of the increase in the tax benefit was due to 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 offset by changes in book losses in certain jurisdictions for which no benefit can be recognized.

As of November 30, 2023 and February 28, 2023, 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 November 30, 2023 and February 28, 2023, 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, 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 is effective for taxable years beginning after December 31, 2022 and the excise tax applies to stock repurchases after December 31, 2022. The alternative minimum tax would not be applicable in our next fiscal year as it is based on a three-year average annual adjusted financial statement income in excess of $1 billion. We continue to evaluate any impact related to the excise tax on net stock repurchases based on our relative activity.

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Commitments and Contingencies

9 Months Ended

Nov. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

26. Commitments and Contingencies

In 2014, Kewill Inc. (Kewill) (a predecessor of BluJay) entered into a software licensing and service contract with a customer that resulted in a dispute over Kewill’s performance under the agreement. In June 2020, prior to our acquisition of BluJay, the customer filed suit. BluJay and its external counsel considered the claims meritless and intended to file a counter claim for delinquent uncollected receivables. At the time of the BluJay Acquisition in September 2021, an allowance for credit losses was recorded against the uncollected receivables from this customer. No further accrual was established for this litigation at the time of the acquisition or in subsequent periods through the first quarter of fiscal 2024, as in our judgement, which was based on the advice of external legal counsel, the claims were without merit. Any loss beyond the uncollected receivables was considered remote and the maximum exposure was believed to be immaterial. In February 2022, consistent with the related contractual terms, the case moved to binding arbitration. Upon conclusion of the arbitration proceedings in August 2023, the arbitrator ruled against BluJay. On September 14, 2023, the parties agreed to a settlement for $17.8 million which resolved the matter and released us from all alleged claims. The settlement was paid on September 20, 2023.

The settlement is not an admission of liability or wrongdoing by us or our predecessors, nor does it validate the alleged claims.

We accrued $17.8 million for the settlement in the second quarter of fiscal 2024 as part of general and administrative expenses on the Condensed Consolidated Statement of Operations. The $17.8 million was paid during the third quarter of fiscal 2024.

From time to time, we have exposure and are subject to contingencies that arise in the ordinary course of business for a variety of claims. 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 other 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

9 Months Ended

Nov. 30, 2023

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

27. Supplemental Cash Flow Information

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

	Nine Months Ended November 30,
(In thousands)	2023		2022
Supplemental cash flow information - Cash paid for:
Interest	$	76,748	$	29,325
Income taxes		6,232		7,669
Non-cash investing and financing activities:
Capital expenditures included in accounts payable and accrued liabilities		1,053		263
Right-of-use assets obtained in exchange for operating lease obligations		8,708		2,559
Shares withheld for taxes on vesting of restricted stock		3,059		1,593
Conversion of Common Units to Class A Common Stock		836		1,809

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Subsequent Events

9 Months Ended

Nov. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

28. Subsequent Events

As part of the retention effort initiated in November 2023, an additional 434,784 retention time-based RSUs were granted to executive officers and senior management in December 2023. These retention awards also had an eighteen-month vesting period.

In January 2024, there were 1,497,316 Common Units converted into Class A Common Stock with a value of $6.7 million based off the 5-day VWAP which decrease noncontrolling interests by $6.7 million and increased our outstanding Class A Common Stock.

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Organization and Basis of Presentation (Policies)

9 Months Ended

Nov. 30, 2023

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. 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. The unaudited operating results for interim periods reported are not necessarily indicative of the results for the entire fiscal year. For further information, refer to the consolidated financial statements and notes thereto included in our 2023 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.

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

Recently Adopted Accounting Guidance

In March 2020, the Financial Accounting Standards Board (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 expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criterion are met. On January 7, 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. The optional expedients and exceptions can be applied to contract modifications made until December 31, 2024. We have transitioned our debt instruments from LIBOR to SOFR and our Tax Receivable Agreement liability from LIBOR plus 100 basis points to SOFR plus the applicable spread for the quarter. The change in interest rates on our debt and Tax Receivable Agreement liability did not have a material effect on our financial position or results of operations.

Recent Accounting Guidance Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for our fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. We are currently evaluating the effect of adopting ASU 2023-07 on our disclosures.

In December 2023, the FASB issued 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures to enhance income tax information primarily through changes in the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated statements and related disclosures.

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Acquisitions (Tables) - Logistyx Technologies, LLC

9 Months Ended

Nov. 30, 2023

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
Working capital adjustment		(2,550	)
Estimated consideration paid for the Logistyx Acquisition	$	180,806

Schedule of Allocation of Purchase Price

The final purchase price allocation was as follows:

($ in thousands)	Final Purchase Price Allocation
Cash and cash equivalents	$	1,563
Account receivable, net		5,332
Other current assets		3,335
Property and equipment, net		144
Intangible assets		66,800
Goodwill (1)		123,746
Non-current assets		619
Accounts payable		(5,897	)
Current liabilities		(3,931	)
Deferred revenue (2)		(10,747	)
Non-current liabilities		(158	)
Total assets acquired and liabilities assumed	$	180,806

(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 was 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.

Summary of Fair Value of Intangible Assets

The fair value of the intangible assets was 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.

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Accounts Receivable (Tables)

9 Months Ended

Nov. 30, 2023

Receivables [Abstract]

Schedule of Accounts Receivable, Net

Accounts receivable, net consisted of the following:

($ in thousands)	November 30, 2023			February 28, 2023
Accounts receivable	$	110,510		$	153,618
Unbilled receivables		23,138			25,481
Less: Allowance for credit losses		(6,318	)		(4,290	)
Accounts receivable, net	$	127,330		$	174,809

Schedule of Allowance for Credit Losses

The allowance for credit losses was comprised of the following:

($ in thousands)	Amount
Balance, February 28, 2022	$	(3,055	)
Logistyx Acquisition		(267	)
Additions		(2,185	)
Write-offs		1,217
Balance, February 28, 2023		(4,290	)
Additions		(4,276	)
Write-offs		2,248
Balance, November 30, 2023	$	(6,318	)

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Prepaid and Other Current Assets (Tables)

9 Months Ended

Nov. 30, 2023

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)	November 30, 2023		February 28, 2023
Prepaid software and hardware license and maintenance fees	$	9,576	$	9,103
Income and other taxes receivable		4,647		4,618
Prepaid insurance		1,800		1,337
Deferred commissions		6,498		4,771
Prepaid marketing		1,022		1,037
Security deposits		1,109		2,377
Other prepaid expenses and other current assets		5,831		1,957
Total prepaid expenses and other current assets	$	30,483	$	25,200

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Goodwill (Tables)

9 Months Ended

Nov. 30, 2023

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, 2022	$	3,756,871
BluJay Acquisition adjustment (1)		(5,455	)
Logistyx Acquisition (2)		123,746
Impairment charge		(901,566	)
Disposition (3)		(1,306	)
Currency translation adjustment		(44,483	)
Balance, February 28, 2023		2,927,807
Impairment charge		(1,097,741	)
Currency translation adjustment		16,197
Balance, November 30, 2023	$	1,846,263

(1)Represents the goodwill acquired in the BluJay Acquisition as of September 1, 2021 and subsequent purchase price adjustments.

(2)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.

(3)Represents the goodwill that was sold as part of the subsidiary disposition in February 2023.

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Intangible Assets, Net (Tables)

9 Months Ended

Nov. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Net

Intangible assets, net consisted of the following:

	November 30, 2023
($ in thousands)	Weighted Average Useful Life	Cost		Accumulated Amortization			Net
Indefinite-lived:
Trademark / Trade name	Indefinite	$	76,000	$	—		$	76,000
Definite-lived:
Client relationships	13.7		503,157		(175,617	)		327,540
Technology	7.3		692,142		(245,485	)		446,657
Content library	10.0		50,000		(14,122	)		35,878
Trade name	1.0		3,993		(3,993	)		—
Backlog	2.5		800		(560	)		240
Total definite-lived			1,250,092		(439,777	)		810,315
Total intangible assets		$	1,326,092	$	(439,777	)	$	886,315

	February 28, 2023
($ in thousands)	Weighted Average Useful Life	Cost		Accumulated Amortization			Net
Indefinite-lived:
Trademark / Trade name	Indefinite	$	110,000	$	—		$	110,000
Definite-lived:
Client relationships	13.8		500,975		(118,520	)		382,455
Technology	7.3		688,739		(170,178	)		518,561
Content library	10.0		50,000		(10,372	)		39,628
Trade name	1.0		3,843		(3,843	)		—
Backlog	2.5		800		(320	)		480
Total definite-lived			1,244,357		(303,233	)		941,124
Total intangible assets		$	1,354,357	$	(303,233	)	$	1,051,124

Schedule of Future Amortization of Intangible Assets

Future amortization of intangible assets is as follows as of November 30, 2023:

($ in thousands)	Amount
December 2023 - February 2024	$	44,857
2025		148,332
2026		117,238
2027		117,238
2028		92,306
Thereafter		290,344
Total future amortization	$	810,315

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Property and Equipment, Net (Tables)

9 Months Ended

Nov. 30, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following:

($ in thousands)	November 30, 2023			February 28, 2023
Computer equipment	$	61,961		$	52,296
Software		27,054			26,430
Software development costs		49,236			35,631
Furniture and fixtures		3,262			3,032
Leasehold improvements		9,313			9,203
Gross property and equipment		150,826			126,592
Less accumulated depreciation and amortization		(80,802	)		(54,116	)
Property and equipment, net	$	70,024		$	72,476

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Accounts Payable and Accrued Liabilities (Tables)

9 Months Ended

Nov. 30, 2023

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consisted of the following:

($ in thousands)	November 30, 2023		February 28, 2023
Accrued compensation	$	31,589	$	40,365
Accrued severance and retention		1,071		937
Trade accounts payable		29,719		32,859
Accrued litigation		1,690		400
Accrued professional services		3,897		3,346
Restructuring liability		146		213
Interest payable		—		5,324
Client deposits		2,630		2,574
Tax receivable agreement liability		1,691		—
Other		10,763		11,473
Total accounts payable and accrued liabilities	$	83,196	$	97,491

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Notes Payable (Tables)

9 Months Ended

Nov. 30, 2023

Debt Disclosure [Abstract]

Schedule of Notes Payable Outstanding

Notes payable outstanding were as follows:

($ in thousands)	November 30, 2023			February 28, 2023
2021 Term Loan	$	1,069,978		$	1,078,200
Other notes payable		347			492
Total notes payable		1,070,325			1,078,692
Less unamortized debt issuance costs		(20,295	)		(23,912	)
Total notes payable, net		1,050,030			1,054,780
Less current portion		(11,122	)		(11,144	)
Notes payable, less current portion, net	$	1,038,908		$	1,043,636

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Financial Instruments (Tables)

9 Months Ended

Nov. 30, 2023

Derivatives, Fair Value [Line Items]

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

The following table represents the Condensed Consolidated Balance Sheets location and estimated fair values of the foreign currency forward contracts:

($ in thousands)	November 30, 2023			February 28, 2023
Accounts payable and accrued liabilities	$	(127	)	$	(659	)
Other noncurrent liabilities		—			(197	)

Interest Rate collar Agreements [Member]

Derivatives, Fair Value [Line Items]

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

The following table represents the Condensed Consolidated Balance Sheets location and estimated fair value of the Collars:

($ in thousands)	Notional		November 30, 2023
Prepaid expenses and other current assets	$	200,000	$	401
Other noncurrent assets		200,000		535
Prepaid expenses and other current assets		100,000		332
Other noncurrent assets		100,000		443

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Fair Value Measurement (Tables)

9 Months Ended

Nov. 30, 2023

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
November 30, 2023
Asset-backed securities	$	162	$	47	$	—	$	209
February 28, 2023
Asset-backed securities	$	162	$	35	$	—	$	197

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:

	November 30, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Asset-backed securities	$	—	$	209	$	—	$	209
Total investments		—		209		—		209
Other assets:
Interest rate collar agreements		—		1,711		—		1,711
Total other assets		—		1,711		—		1,711
Total assets	$	—	$	1,920	$	—	$	1,920
Liabilities:
Forward currency contracts	$	—	$	127	$	—	$	127
Cash-settled restricted stock units		16		—		—		16
Tax receivable agreement liability		—		—		44,799		44,799
Warrant liability		7,900		—		2,930		10,830
Contingent consideration		—		—		14,188		14,188
Total liabilities	$	7,916	$	127	$	61,917	$	69,960

	February 28, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Asset-backed securities	$	—	$	197	$	—	$	197
Total investments		—		197		—		197
Total assets	$	—	$	197	$	—	$	197
Liabilities:
Forward currency contracts	$	—	$	856	$	—	$	856
Cash-settled stock units		21		—		—		21
Tax receivable agreement liability		—		—		53,154		53,154
Warrant liability		16,920		—		12,696		29,616
Contingent consideration		—		—		29,548		29,548
Total liabilities	$	16,941	$	856	$	95,398	$	113,195

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 the contingent consideration using significant unobservable inputs (Level 3):

($ in thousands)	November 30, 2023			February 28, 2023
Beginning of period	$	29,548		$	45,568
Gain from fair value of contingent consideration		(15,360	)		(16,020	)
End of period	$	14,188		$	29,548

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:

($ in thousands)	November 30, 2023			February 28, 2023
Beginning of period	$	53,154		$	50,268
(Gain) loss from fair value of tax receivable agreement liability		(8,355	)		2,886
End of period	$	44,799		$	53,154

The following table provides a reconciliation of the warrant liability:

($ in thousands)	November 30, 2023			February 28, 2023
Beginning of period	$	29,616		$	67,139
Gain from fair value of warrant liability		(18,786	)		(37,523	)
End of period	$	10,830		$	29,616

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Revenue (Tables)

9 Months Ended

Nov. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue by Geographic Region

Revenue by geographic regions consisted of the following:

	Three Months Ended November 30,				Nine Months Ended November 30,
($ in thousands)	2023		2022		2023		2022
Americas	$	133,018	$	139,468	$	401,842	$	410,100
Europe		19,404		20,120		58,678		59,049
Asia Pacific		5,075		5,305		15,585		16,801
Total revenue	$	157,497	$	164,893	$	476,105	$	485,950

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Severance and Exit Costs (Tables)

9 Months Ended

Nov. 30, 2023

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 November 30,					Nine Months Ended November 30,
($ in thousands)	2023			2022		2023			2022
Severance	$	(9	)	$	534	$	350		$	4,224
Lease exits		—			81		(38	)		316
Total severance and exit costs	$	(9	)	$	615	$	312		$	4,540

Schedule of Changes in Severance and Exit Cost Accruals

The following table reflects the changes in the severance and exit cost accruals:

($ in thousands)	November 30, 2023			February 28, 2023
Beginning of period	$	1,150		$	2,687
Payments		(3,679	)		(6,225	)
Impairment of right-of-use assets		—			(421	)
Disposition (1)		—			(162	)
Expenses		3,746			5,271
End of period	$	1,217		$	1,150

(1)Represents the severance and retention accrual that was written off as part of the subsidiary disposition in February 2023.

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Stockholders' Equity (Tables)

9 Months Ended

Nov. 30, 2023

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, 2023		302,405,353		32,992,007			94		3,372,184
Conversion of Common Units (1)		269,087		(269,087	)		—		—
Issuance of common stock pursuant to stock-based     awards (2)		408,881		—			—		—
Vesting of restricted awards, net of shares     withheld for taxes (3)		1,304,734		—			—		—
Balance, November 30, 2023		304,388,055		32,722,920			94		3,372,184

(1)Class A Common Stock issued for the conversion of Common Units settled in stock. 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)Issuance of Class A Common Stock associated with the restricted stock award grants.

(3)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 (Tables)

9 Months Ended

Nov. 30, 2023

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 (Losses) Gains on Foreign Exchange Forward Contracts			Unrealized Holding Gains on Interest Rate Collar Agreements		Total
Balance, February 28, 2023	$	(67,747	)	$	(856	)	$	—	$	(68,603	)
Other comprehensive gain		20,271			729			1,711		22,711
Other comprehensive gain		20,271			729			1,711		22,711
Balance, November 30, 2023	$	(47,476	)	$	(127	)	$	1,711	$	(45,892	)

Schedule of Effect of Amounts Reclassified Out of Unrealized Holding Losses for Foreign Exchange Forward Contracts Into Net Loss

The effect of amounts reclassified out of unrealized holding losses for foreign exchange forward contracts into net loss was as follows:

	Three Months Ended November 30,				Nine Months Ended November 30,
($ in thousands)	2023		2022		2023		2022
Reclassifications:
Cost of revenue	$	36	$	105	$	127	$	105
Research and development		35		94		119		94
Sales and marketing		2		3		6		3
General and administrative		15		48		53		48
Total	$	88	$	250	$	305	$	250

Schedule of Effect of Amounts Reclassified Out of Unrealized Gains for Interest Rate Collars as Offset to Interest Expense

The effect of amounts reclassified out of unrealized gains for interest rate collars as an offset to interest expense was as follows:

	Three Months Ended			Nine Months Ended
($ in thousands)	November 30, 2023			November 30, 2023
Reclassifications:
$100 million notional interest rate collar	$	(208	)	$	(463	)
$200 million notional interest rate collar		(290	)		(596	)
Total	$	(498	)	$	(1,059	)

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Earnings Per Share (Tables)

9 Months Ended

Nov. 30, 2023

Earnings Per Share [Abstract]

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

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

	Three Months Ended November 30,					Nine Months Ended November 30,
(in thousands, except per share data)	2023			2022		2023			2022
Net loss per share:
Numerator - basic:
Net (loss) income per share:	$	(740,031	)	$	5,503	$	(1,139,544	)	$	(416,703	)
Less: Net (loss) income attributable to noncontrolling     interests		(72,475	)		698		(111,721	)		(41,464	)
Net (loss) income attributable to E2open Parent     Holdings, Inc. - basic	$	(667,556	)	$	4,805	$	(1,027,823	)	$	(375,239	)
Numerator - diluted:
Net (loss) income attributable to E2open Parent     Holdings, Inc. - basic	$	(667,556	)	$	4,805	$	(1,027,823	)	$	(375,239	)
Net (loss) income attributable to E2open Parent     Holdings, Inc. - diluted	$	(667,556	)	$	4,805	$	(1,027,823	)	$	(375,239	)
Denominator - basic:
Weighted average shares outstanding - basic		303,848			302,201		303,188			301,822
Net (loss) income per share - basic	$	(2.20	)	$	0.02	$	(3.39	)	$	(1.24	)
Denominator - diluted:
Weighted average shares outstanding - basic		303,848			302,201		303,188			301,822
Weighted average effect of dilutive securities:
Time based restricted stock		—			158		—			—
Weighted average shares outstanding - diluted		303,848			302,359		303,188			301,822
Diluted net (loss) income per common share	$	(2.20	)	$	0.02	$	(3.39	)	$	(1.24	)

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 November 30,				Nine Months Ended November 30,
	2023		2022		2023		2022
Series B-1 common stock		94		94		94		94
Series B-2 common stock		3,372,184		3,372,184		3,372,184		3,372,184
Restricted common units Series 2		2,627,724		2,627,724		2,627,724		2,627,724
Warrants		29,079,872		29,079,872		29,079,872		29,079,872
Common Units		32,879,559		33,126,073		32,954,797		33,350,756
Performance-based options		1,334,919		4,832,802		1,215,252		3,986,158
Time-based options		1,038,513		—		901,246		—
Performance-based restricted stock units		3,837,349		2,101,221		3,514,740		2,059,595
Time-based restricted stock units		8,449,869		2,303,641		9,778,141		2,404,272
Time-based restricted stock awards		187,824		—		408,881		—
Units/Shares excluded from the dilution     computation		82,807,907		77,443,611		83,852,931		76,880,655

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Share-Based Compensation (Tables)

9 Months Ended

Nov. 30, 2023

Summary of Estimated Grant-Date Fair Values Assumptions

The estimated grant-date fair values of the options granted or modified during the nine months ended November 30, 2023 and 2022 were calculated using the Black-Scholes option-pricing valuation model, based on the following assumptions:

	Nine Months Ended November 30,
	2023	2022
Expected term (in years)	0.68 - 6.25	6.25
Expected volatility	48.97% - 56.84%	44.17%
Risk-free interest rate	3.38% - 5.30%	2.91%
Expected dividend yield	0%	0%

Schedule of Functional Classification in 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 November 30,				Nine Months Ended November 30,
($ in thousands)	2023		2022		2023		2022
Cost of revenue	$	1,304	$	545	$	3,059	$	856
Research and development		1,665		938		4,177		2,181
Sales and marketing		1,556		901		3,444		2,560
General and administrative		2,316		2,413		8,048		7,542
Total share-based compensation	$	6,841	$	4,797	$	18,728	$	13,139

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, 2023		4,833		$	8.42		8.5
Granted		1,232			4.65
Forfeited/Expired		(3,949	)		7.82
Balance, November 30, 2023		2,116		$	7.36		6.8
Vested and exercisable as of November 30, 2023		807		$	9.28		3.6

	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		(966	)		9.85
Balance, November 30, 2022		4,833		$	8.42		8.7
Vested and exercisable as of November 30, 2022		573		$	9.82		5.2

Schedule of Restricted Equity Plan

Activity under the 2021 Incentive Plan related to RSUs and RSAs 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, 2023		6,475		$	8.44		2.4
Granted		12,235			5.26
Added by performance factor		39			9.02
Released		(1,968	)		8.36
Canceled and forfeited		(3,079	)		6.83
Balance, November 30, 2023		13,702		$	5.77		2.1

	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		5,645			7.45
Added by performance factor		300			12.87
Released		(870	)		12.12
Canceled and forfeited		(560	)		10.00
Balance, November 30, 2022		6,618		$	8.46		2.6

2021 Incentive Plan | Cash-Settled Units

Schedule of Restricted Equity Plan

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

	Number of Units (in thousands)			Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Recognition Period (in years)
Balance, February 28, 2023		25		$	6.07		2.6
Granted		24			5.60
Released		(8	)		6.07
Canceled and forfeited		(4	)		5.96
Balance, November 30, 2023		37		$	5.78		2.3

	Number of Units (in thousands)		Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Recognition Period (in years)
Balance, February 28, 2022		—	$	—		—
Granted		25		6.07
Balance, November 30, 2022		25	$	6.07		2.8

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Leases (Tables)

9 Months Ended

Nov. 30, 2023

Leases [Abstract]

Classifications of Estimated ROU Assets, Net and Lease Liabilities

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

($ in thousands)	Balance Sheet Location	November 30, 2023		February 28, 2023
Operating lease right-of-use assets	Operating lease right-of-use assets	$	21,580	$	18,758
Finance lease right-of-use asset	Property and equipment, net		4,175		3,358
Total right-of-use assets		$	25,755	$	22,116

($ in thousands)	Balance Sheet Location	November 30, 2023		February 28, 2023
Operating lease liability - current	Current portion of operating lease obligations	$	7,317	$	7,622
Operating lease liability	Operating lease obligations		17,959		15,379
Finance lease liability - current	Current portion of finance lease obligations		1,120		2,582
Finance lease liability	Finance lease obligations		3,188		1,049
Total lease liabilities		$	29,584	$	26,632

Summary of Lease Cost

The following table summarizes our total lease cost:

	Three Months Ended November 30,						Nine Months Ended November 30,
($ in thousands)	2023			2022			2023			2022
Finance lease cost:
Amortization of right-of-use asset	$	135		$	508		$	1,319		$	1,686
Interest on lease liability		23			35			124			161
Finance lease cost		158			543			1,443			1,847
Operating lease cost:
Operating lease cost		1,722			2,239			5,452			5,505
Variable lease cost		823			510			2,674			3,810
Sublease income		(209	)		(46	)		(440	)		(482	)
Operating net lease cost		2,336			2,703			7,686			8,833
Total net lease cost	$	2,494		$	3,246		$	9,129		$	10,680

Short-term lease expense was immaterial for the three and nine months ended November 30, 2023. There was no short-term lease expense for the three and nine months ended November 30, 2022.

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

	Nine Months Ended November 30,
($ in thousands)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	6,378	$	7,365

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:

	Nine Months Ended November 30,
	2023			2022
Weighted-average remaining lease term (in years):
Finance lease		4.14			0.69
Operating lease		3.98			3.77
Weighted-average discount rate:
Finance lease		7.66	%		9.20	%
Operating lease		6.95	%		5.43	%

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 November 30, 2023:

($ in thousands)	Operating Leases			Finance Leases
December 2023 - February 2024	$	2,315		$	391
2025		8,483			1,357
2026		6,647			1,256
2027		5,462			748
2028		3,299			748
Thereafter		2,927			561
Total		29,133			5,061
Less: Present value discount		(3,857	)		(753	)
Lease liabilities	$	25,276		$	4,308

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Supplemental Cash Flow Information (Tables)

9 Months Ended

Nov. 30, 2023

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:

	Nine Months Ended November 30,
(In thousands)	2023		2022
Supplemental cash flow information - Cash paid for:
Interest	$	76,748	$	29,325
Income taxes		6,232		7,669
Non-cash investing and financing activities:
Capital expenditures included in accounts payable and accrued liabilities		1,053		263
Right-of-use assets obtained in exchange for operating lease obligations		8,708		2,559
Shares withheld for taxes on vesting of restricted stock		3,059		1,593
Conversion of Common Units to Class A Common Stock		836		1,809

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Accounting Standards - Additional Information (Details)	9 Months Ended
	Nov. 30, 2023
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Basis points	1.00%

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Acquisitions - Additional Information (Details) - USD ($) $ in Thousands					3 Months Ended		6 Months Ended	9 Months Ended		24 Months Ended
	Dec. 05, 2022	Sep. 01, 2022	May 31, 2022	Mar. 02, 2022	Nov. 30, 2023	Nov. 30, 2022	Sep. 02, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
Business Acquisition [Line Items]
Line of credit facility, additional borrowing amount			$ 190,000
Acquisition-related expenses					$ 9	$ 1,969		$ 416	$ 14,313
Logistyx Technologies, LLC
Business Acquisition [Line Items]
Business combination, purchase price				$ 185,000
Cash payment		$ 54,000	$ 37,400	90,000			$ 95,000
Business combination working capital adjustment		$ 3,600		(2,550)
Business combination additional payment for working capital	$ 1,100
Expenses related to business combination										$ 4,100
Acquisition-related expenses				1,600
Logistyx Technologies, LLC | Advisory Fees and Other Expenses Member
Business Acquisition [Line Items]
Acquisition-related expenses				$ 500

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Acquisitions - Summary of Consideration Paid for Acquisition (Details) - Logistyx Technologies, LLC - USD ($) $ in Thousands	Sep. 01, 2022	Mar. 02, 2022
Business Acquisition [Line Items]
Cash consideration		$ 153,090
Cash repayment of debt		29,777
Cash paid for seller transaction costs		489
Working capital adjustment	$ 3,600	(2,550)
Estimated consideration paid		$ 180,806

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Acquisitions - Schedule of Final Purchase Price Allocation (Details) - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023	Mar. 02, 2022	Feb. 28, 2022
Business Acquisition [Line Items]
Goodwill	$ 1,846,263	$ 2,927,807		$ 3,756,871
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			123,746
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			$ 180,806

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Acquisitions - Schedule of Fair Value of Intangible Assets (Details) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
	Mar. 02, 2022	Nov. 30, 2023	Feb. 28, 2023
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 8 months 12 days	13 years 9 months 18 days
Backlog
Business Acquisition [Line Items]
Weighted Average Useful Lives		2 years 6 months	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

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Liquidity and Capital Resources - Additional Information (Details) - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023	Nov. 30, 2022
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 110,279	$ 93,032	$ 85,688

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Accounts Receivable - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023	Feb. 28, 2022
Receivables [Abstract]
Accounts receivable	$ 110,510	$ 153,618
Unbilled receivables	23,138	25,481
Less: Allowance for credit losses	(6,318)	(4,290)	$ (3,055)
Accounts receivable, net	$ 127,330	$ 174,809

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Accounts Receivable - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Nov. 30, 2023	Feb. 28, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance	$ (4,290)	$ (3,055)
Additions	(4,276)	(2,185)
Write-offs	2,248	1,217
Balance	$ (6,318)	(4,290)
Logistyx Acquisition
Financing Receivable, Allowance for Credit Loss [Line Items]
Acquisition		$ (267)

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Prepaid and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid software and hardware license and maintenance fees	$ 9,576	$ 9,103
Income and other taxes receivable	4,647	4,618
Prepaid insurance	1,800	1,337
Deferred commissions	6,498	4,771
Prepaid marketing	1,022	1,037
Security deposits	1,109	2,377
Other prepaid expenses and other current assets	5,831	1,957
Total prepaid expenses and other current assets	$ 30,483	$ 25,200

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Goodwill - Additional Information (Details)	3 Months Ended		6 Months Ended	9 Months Ended		12 Months Ended
	Nov. 30, 2023 USD ($)	Nov. 30, 2022 USD ($)	Aug. 31, 2023 ReportingUnit	Nov. 30, 2023 USD ($)	Nov. 30, 2022 USD ($)	Feb. 28, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment charge | $	$ 687,700,000	$ 0		$ 1,097,741,000	$ 514,816,000	$ 901,566,000
Number of reporting unit | ReportingUnit			1

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Goodwill - Schedule of Changes In Goodwill (Details) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
		Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
Goodwill [Line Items]
Beginning balance				$ 2,927,807,000	$ 3,756,871,000	$ 3,756,871,000
Disposition	[1]					(1,306,000)
Impairment charge		$ (687,700,000)	$ 0	(1,097,741,000)	$ (514,816,000)	(901,566,000)
Currency translation adjustment				(16,197,000)		(44,483,000)
Ending balance		$ 1,846,263,000		$ 1,846,263,000		2,927,807,000
BluJay Acquisition
Goodwill [Line Items]
Goodwill acquisition adjustment	[2]					(5,455,000)
Logistyx Acquisition
Goodwill [Line Items]
Acquisitions	[3]					$ 123,746,000

[1] Represents the goodwill that was sold as part of the subsidiary disposition in February 2023.

[2] Represents the goodwill acquired in the BluJay Acquisition as of September 1, 2021 and subsequent purchase price adjustments.

[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 - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Nov. 30, 2023	Feb. 28, 2023
Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, Cost	$ 1,250,092	$ 1,244,357
Definite-lived intangible assets, Accumulated Amortization	(439,777)	(303,233)
Definite-lived intangible assets, Net	810,315	941,124
Total intangible assets, Cost	1,326,092	1,354,357
Total intangible assets, Net	$ 886,315	$ 1,051,124
Client Relationships
Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Useful Lives	13 years 8 months 12 days	13 years 9 months 18 days
Definite-lived intangible assets, Cost	$ 503,157	$ 500,975
Definite-lived intangible assets, Accumulated Amortization	(175,617)	(118,520)
Definite-lived intangible assets, Net	$ 327,540	$ 382,455
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	$ 692,142	$ 688,739
Definite-lived intangible assets, Accumulated Amortization	(245,485)	(170,178)
Definite-lived intangible assets, Net	$ 446,657	$ 518,561
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 Amortization	(14,122)	(10,372)
Definite-lived intangible assets, Net	$ 35,878	$ 39,628
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	$ 3,993	$ 3,843
Definite-lived intangible assets, Accumulated Amortization	$ (3,993)	$ (3,843)
Backlog
Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Useful Lives	2 years 6 months	2 years 6 months
Definite-lived intangible assets, Cost	$ 800	$ 800
Definite-lived intangible assets, Accumulated Amortization	(560)	(320)
Definite-lived intangible assets, Net	$ 240	$ 480
Trademark / Trade name
Finite Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	Indefinite	Indefinite
Indefinite-lived intangible assets	$ 76,000	$ 110,000

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Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Impairment charge for intangible assets	$ 30,000	$ 0	$ 34,000	$ 0
Intangible assets amortization expense	44,600	$ 44,400	134,100	$ 136,400
Trademark / Trade name
Finite-Lived Intangible Assets [Line Items]
Impairment charge for intangible assets	$ 30,000		$ 34,000

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Intangible Assets, Net - Schedule of Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
December 2023 - February 2024	$ 44,857
2025	148,332
2026	117,238
2027	117,238
2028	92,306
Thereafter	290,344
Definite-lived intangible assets, Net	$ 810,315	$ 941,124

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Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023
Property Plant And Equipment [Line Items]
Gross property and equipment	$ 150,826	$ 126,592
Software development costs	49,236	35,631
Less accumulated depreciation and amortization	(80,802)	(54,116)
Property and equipment, net	70,024	72,476
Computer Equipment
Property Plant And Equipment [Line Items]
Gross property and equipment	61,961	52,296
Software
Property Plant And Equipment [Line Items]
Gross property and equipment	27,054	26,430
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Gross property and equipment	3,262	3,032
Leasehold Improvements
Property Plant And Equipment [Line Items]
Gross property and equipment	$ 9,313	$ 9,203

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Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 9,000	$ 8,100	$ 26,700	$ 23,400
Capitalized software costs	49,236		49,236		$ 35,631
Amortization of capitalized software development costs	$ 2,400	$ 1,400	$ 6,700	$ 3,600

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Investments - Additional Information (Details) - USD ($)	1 Months Ended		4 Months Ended	9 Months Ended
	May 31, 2022	Feb. 28, 2022	May 31, 2022	Nov. 30, 2023	Nov. 30, 2022
Schedule of Investments [Line Items]
Payments made to acquire minority investments	$ 2,500,000	$ 2,500,000			$ 3,000,000
Minority investment amount			$ 5,000,000
Impairment charges				$ 0
Transaction fees
Schedule of Investments [Line Items]
Minority investment amount	$ 500,000

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Accounts Payable and Accrued Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023
Payables and Accruals [Abstract]
Accrued compensation	$ 31,589	$ 40,365
Accrued severance and retention	1,071	937
Trade accounts payable	29,719	32,859
Accrued litigation	1,690	400
Accrued professional services	3,897	3,346
Restructuring liability	146	213
Interest payable		5,324
Client deposits	2,630	2,574
Tax receivable agreement liability	1,691
Other	10,763	11,473
Total accounts payable and accrued liabilities	$ 83,196	$ 97,491

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Tax Receivable Agreement - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Feb. 04, 2021	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
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%
Basis points				1.00%
Tax receivable agreement liability		$ 61.4		$ 61.4		$ 69.7
Tax receivable agreement tax rate		24.20%		24.20%		24.20%
Business combination discount rate for ASC 805 calculation		10.00%		10.00%		9.70%
Increase in ASC 450 liability				$ 0.7	$ 0.7
Change in tax receivable agreement liability		$ 2.9	$ 2.7	$ 8.4	$ 9.1
LIBOR Rate
Tax Receivable Agreement [Line Items]
Basis points				1.00%

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Notes Payable - Schedule of Notes Payable Outstanding (Details) - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023
Debt Instrument [Line Items]
Total notes payable	$ 1,070,325	$ 1,078,692
Less unamortized debt issuance costs	(20,295)	(23,912)
Total notes payable, net	1,050,030	1,054,780
Less current portion	(11,122)	(11,144)
Notes payable, less current portion, net	1,038,908	1,043,636
Notes Payable | Other Notes Payable
Debt Instrument [Line Items]
Total notes payable	347	492
Notes Payable | 2021 Term Loan
Debt Instrument [Line Items]
Total notes payable	$ 1,069,978	$ 1,078,200

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Notes Payable - Additional Information (Details) - USD ($) $ in Thousands			1 Months Ended	3 Months Ended		9 Months Ended			12 Months Ended
	Jul. 01, 2023	Feb. 04, 2021	Feb. 28, 2021	May 31, 2022	Aug. 31, 2021	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2021	Feb. 28, 2023	Mar. 31, 2023	Apr. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Line of credit, sublimit			$ 15,000
Line of credit facility, additional borrowing amount				$ 190,000
Debt Instrument, Basis Spread on Variable Rate						1.00%
Repayment of outstanding balance						$ 8,366	$ 103,174
Zero Cost Interest Rate Collars
Debt Instrument [Line Items]
Notional interest rate collar amount						$ 200,000				$ 300,000
LIBOR Rate
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate						1.00%
Term Loans | SOFR Rate | Minimum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.25%
Term Loans | SOFR Rate | Maximum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.50%
Revolving Loans | SOFR Rate | Minimum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.50%
Revolving Loans | SOFR Rate | Maximum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.00%
Revolving Loans | SONIA Rate | Minimum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.50%
Revolving Loans | SONIA Rate | Maximum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.00%
2021 Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity			75,000			$ 0			$ 0			$ 155,000
Line of credit, sublimit			15,000									30,000
Line of credit facility, mature date						Feb. 04, 2026
Line of credit, available borrowing capacity						$ 155,000			155,000
2021 Term Loan
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity			$ 525,000			$ 1,070,000			$ 1,078,200
Line of credit, frequency of payments					quarterly
Line of credit, installments amount		$ 1,300		$ 2,700				$ 2,300
Line of credit facility, mature date						Feb. 04, 2028
Line of credit, minimum additional borrowing amount		$ 2,000
Interest rate						8.96%			8.08%
2021 Term Loan | SOFR Rate
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate						3.50%
2021 Term Loan | LIBOR Rate
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate									3.50%
Credit Agreement
Debt Instrument [Line Items]
Line of credit facility, additional borrowing amount											$ 190,000	$ 380,000
2021 Term Loan and Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage			0.25%
2021 Term Loan and Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage			0.375%
2021 Term Loan and Revolving Credit Facility | NYFRB Rate
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			0.50%
2021 Term Loan and Revolving Credit Facility | Eurodollar
Debt Instrument [Line Items]
Debt Instrument, Description of Variable Rate Basis						one month interest period plus 1%
2021 Term Loan and Revolving Credit Facility | SOFR Rate
Debt Instrument [Line Items]
Debt Instrument, Description of Variable Rate Basis						Beginning July 1, 2023, the Eurocurrency Rate ceased to be applicable and was replaced by the SOFR Rate. The adjusted SOFR Rate shall be the SOFR Rate plus 0.11448% for a one-month interest rate loan, 0.26161% for a three-month interest rate loan and 0.42826% for a six-month interest rate loan.
2021 Term Loan and Revolving Credit Facility | Term Loans | Base Rate | Minimum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			2.25%
2021 Term Loan and Revolving Credit Facility | Term Loans | Base Rate | Maximum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			2.50%
2021 Term Loan and Revolving Credit Facility | Term Loans | Eurodollar | Minimum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			3.25%
2021 Term Loan and Revolving Credit Facility | Term Loans | Eurodollar | Maximum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			3.50%
2021 Term Loan and Revolving Credit Facility | Revolving Loans | Base Rate | Minimum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			1.50%
2021 Term Loan and Revolving Credit Facility | Revolving Loans | Base Rate | Maximum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			2.00%
2021 Term Loan and Revolving Credit Facility | Revolving Loans | Eurodollar | Minimum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			2.50%
2021 Term Loan and Revolving Credit Facility | Revolving Loans | Eurodollar | Maximum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			3.00%
2021 Term Loan and Revolving Credit Facility | One-month Interest Rate Loan | SOFR Rate
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.11448%
2021 Term Loan and Revolving Credit Facility | Three-month Interest Rate Loan | SOFR Rate
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.26161%
2021 Term Loan and Revolving Credit Facility | Six-month Interest Rate Loan | SOFR Rate
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.42826%

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Contingent Consideration - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
Business Acquisition Contingent Consideration [Line Items]
Contingent consideration liability	$ 14,200		$ 14,200		$ 29,500
Contingent consideration liability remeasured gain	$ 5,100	$ 6,300	$ 15,400	$ 17,800
RCUs
Business Acquisition Contingent Consideration [Line Items]
Vesting period			10 years
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, terms of conversion, description			The Series B-2 common stock will automatically convert into Class A Common Stock on a one-to-one basis
Common stock conversion price			$ 15.00
Share price per share shall be decreased if dividends paid to class A common stock			$ 15.00
Vesting period			10 years
Series 2 RCUs
Business Acquisition Contingent Consideration [Line Items]
Common stock, shares outstanding	2,627,724		2,627,724		2,627,724
Common stock conversion price			$ 15.00
Share price per share shall be decreased if dividends paid to class A common stock			$ 15.00

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Financial Instruments - Additional Information (Details) - USD ($) $ in Millions				9 Months Ended
	Mar. 31, 2023	Mar. 24, 2023	Mar. 17, 2023	Nov. 30, 2023	Apr. 06, 2023
Foreign Exchange Forward Contracts
Derivative [Line Items]
Losses on forward foreign currency derivative instruments, net of tax				$ 0.1
Interest Rate Collar Agreements
Derivative [Line Items]
Initiation date of derivative collars			Mar. 17, 2023
Maturity date of derivative collars	Mar. 31, 2026
Notional amount of derivative	$ 200.0
Cap interest rate	4.75%
Floor interest rate	2.57%
Additonal Interest Rate Collar
Derivative [Line Items]
Notional amount of derivative					$ 100.0
Cap interest rate					4.50%
Floor interest rate					2.56%
Initiation date of derivative additional collar		Mar. 24, 2023
Cash Flow Hedges | Foreign Exchange Forward Contracts | Minimum
Derivative [Line Items]
Derivative term of contract at inception				1 month
Cash Flow Hedges | Foreign Exchange Forward Contracts | Maximum
Derivative [Line Items]
Derivative term of contract at inception				24 months
Derivative term of contract				9 months

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Financial Instruments - Condensed Consolidated Balance Sheets Location and Estimated Fair Values of Foreign Currency Forward Contracts (Details) - Foreign Exchange Forward Contracts - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023
Accounts Payable and Accrued Liabilities
Derivatives, Fair Value [Line Items]
Amount of derivative instrument fair values	$ (127)	$ (659)
Other Noncurrent Liabilities
Derivatives, Fair Value [Line Items]
Amount of derivative instrument fair values	$ 0	$ (197)

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Financial Instruments - Condensed Consolidated Balance Sheets Location and Estimated Fair Value of Collars (Details) - USD ($) $ in Thousands	Nov. 30, 2023	Apr. 06, 2023	Mar. 31, 2023
Interest Rate Collar Agreements
Derivatives, Fair Value [Line Items]
Notional			$ 200,000
Additonal Interest Rate Collar
Derivatives, Fair Value [Line Items]
Notional		$ 100,000
Prepaid Expenses and Other Current Assets | Interest Rate Collar Agreements
Derivatives, Fair Value [Line Items]
Notional	$ 200,000
Amount of derivative instrument fair values	401
Prepaid Expenses and Other Current Assets | Additonal Interest Rate Collar
Derivatives, Fair Value [Line Items]
Notional	100,000
Amount of derivative instrument fair values	332
Other Noncurrent Assets | Interest Rate Collar Agreements
Derivatives, Fair Value [Line Items]
Notional	200,000
Amount of derivative instrument fair values	535
Other Noncurrent Assets | Additonal Interest Rate Collar
Derivatives, Fair Value [Line Items]
Notional	100,000
Amount of derivative instrument fair values	$ 443

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Fair Value Measurement - Summary of Investments (Details) - Asset-backed Securities - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023
Marketable Securities [Line Items]
Cost	$ 162	$ 162
Gross Unrealized Gains	47	35
Fair Value	$ 209	$ 197

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Fair Value Measurement - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total investments	$ 209	$ 197
Total other assets	1,711
Total assets	1,920	197
Total liabilities	69,960	113,195
Asset-backed Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total investments	209	197
Forward Currency Contracts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	127	856
Interest rate collar agreements
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total other assets	1,711
Cash-settled Restricted Stock Units
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	16	21
Tax Receivable Agreement Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	44,799	53,154
Warrant Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	10,830	29,616
Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	14,188	29,548
Fair Value, Inputs, Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	7,916	16,941
Fair Value, Inputs, Level 1 | Cash-settled Restricted Stock Units
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	16	21
Fair Value, Inputs, Level 1 | Warrant Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	7,900	16,920
Fair Value, Inputs, Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total investments	209	197
Total other assets	1,711
Total assets	1,920	197
Total liabilities	127	856
Fair Value, Inputs, Level 2 | Asset-backed Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total investments	209	197
Fair Value, Inputs, Level 2 | Forward Currency Contracts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	127	856
Fair Value, Inputs, Level 2 | Interest rate collar agreements
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total other assets	1,711
Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	61,917	95,398
Fair Value, Inputs, Level 3 | Tax Receivable Agreement Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	44,799	53,154
Fair Value, Inputs, Level 3 | Warrant Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	2,930	12,696
Fair Value, Inputs, Level 3 | Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	$ 14,188	$ 29,548

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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		9 Months Ended		12 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Gain from fair value of contingent consideration	$ (5,100)	$ (6,300)	$ (15,360)	$ (17,760)
Fair Value, Inputs, Level 3
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning of period			29,548	$ 45,568	$ 45,568
Gain from fair value of contingent consideration			(15,360)		(16,020)
End of period	$ 14,188		$ 14,188		$ 29,548

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Fair Value Measurement - Reconciliation of Liability Measured at Fair Value (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Nov. 30, 2023	Feb. 28, 2023
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning of period	$ 29,548	$ 45,568
End of period	14,188	29,548
Tax Receivable Agreement Liability
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning of period	53,154	50,268
(Gain) loss from fair value of tax receivable agreement liability and warrant liability	(8,355)	2,886
End of period	44,799	53,154
Warrants
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning of period	29,616	67,139
(Gain) loss from fair value of tax receivable agreement liability and warrant liability	(18,786)	(37,523)
End of period	$ 10,830	$ 29,616

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Fair Value Measurement - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Fair Value Disclosures [Abstract]
Fair value transfer between levels	$ 0	$ 0	$ 0	$ 0

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Revenue - Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Disaggregation Of Revenue [Line Items]
Total revenue	$ 157,497	$ 164,893	$ 476,105	$ 485,950
Americas
Disaggregation Of Revenue [Line Items]
Total revenue	133,018	139,468	401,842	410,100
Europe
Disaggregation Of Revenue [Line Items]
Total revenue	19,404	20,120	58,678	59,049
Asia Pacific
Disaggregation Of Revenue [Line Items]
Total revenue	$ 5,075	$ 5,305	$ 15,585	$ 16,801

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Revenue - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
Disaggregation Of Revenue [Line Items]
Total revenue	$ 157,497	$ 164,893	$ 476,105	$ 485,950
Contract with customer asset	23,100		23,100		$ 25,500
Deferred revenue	179,100		179,100		206,300
Deferred revenue, revenue recognized	19,600		156,300
Subscriptions
Disaggregation Of Revenue [Line Items]
Total revenue	132,800	134,884	402,437	396,052
Sales and Marketing Expense
Disaggregation Of Revenue [Line Items]
Amortization expense	1,700	1,000	4,500	2,900
Prepaid Expenses and Other Current Assets and Other Noncurrent Assets
Disaggregation Of Revenue [Line Items]
Capitalized sales commissions	19,700		19,700		$ 16,000
Americas
Disaggregation Of Revenue [Line Items]
Total revenue	133,018	139,468	401,842	410,100
Europe
Disaggregation Of Revenue [Line Items]
Total revenue	19,404	20,120	58,678	59,049
Asia Pacific
Disaggregation Of Revenue [Line Items]
Total revenue	$ 5,075	$ 5,305	$ 15,585	$ 16,801
Revenue | Geographic Concentration | United States
Disaggregation Of Revenue [Line Items]
Concentration risk percentage	84.00%	83.00%	84.00%	83.00%

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Revenue - Additional Information1 (Details) - USD ($) $ in Millions	Nov. 30, 2023	Feb. 28, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-03-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue remaining performance obligation amount		$ 779.6
Revenue remaining performance obligation expected period		5 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-12-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue remaining performance obligation amount	$ 806.0
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		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Restructuring and Related Activities [Abstract]
Severance	$ (9)	$ 534	$ 350	$ 4,224
Lease exits		81	(38)	316
Total severance and exit costs	$ (9)	$ 615	$ 312	$ 4,540

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Severance and Exit Costs - Additional Information (Details) - USD ($) $ in Thousands			3 Months Ended		9 Months Ended
	Oct. 10, 2023	Sep. 27, 2023	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
Restructuring Cost And Reserve [Line Items]
Total severance expense			$ (9)	$ 534	$ 350	$ 4,224
Acquisition and Non-Acquisition Related Severance Payments
Restructuring Cost And Reserve [Line Items]
Total severance expense			4,400	$ 1,000	7,900	$ 5,700
Restructuring Liability
Restructuring Cost And Reserve [Line Items]
Accounts payable and accrued liabilities			100		100		$ 200
Restructuring Severance Liability
Restructuring Cost And Reserve [Line Items]
Accounts payable and accrued liabilities			$ 1,100		$ 1,100		$ 900
Chief Operating Officer
Restructuring Cost And Reserve [Line Items]
Total severance expense		$ 900
Chief Executive Officer
Restructuring Cost And Reserve [Line Items]
Total severance expense	$ 1,300

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Severance and Exit Costs - Schedule of Changes in Severance and Exit Cost Accruals (Details) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Nov. 30, 2023	Feb. 28, 2023
Restructuring and Related Activities [Abstract]
Beginning of period		$ 1,150	$ 2,687
Payments		(3,679)	(6,225)
Impairment of right-of-use assets			(421)
Disposition	[1]		(162)
Expenses		3,746	5,271
End of period		$ 1,217	$ 1,150

[1] Represents the severance and retention accrual that was written off as part of the subsidiary disposition in February 2023.

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Warrants - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
Class Of Warrant Or Right [Line Items]
Warrants outstanding	29,079,872		29,079,872		29,079,872
Warrant exercise price per share	$ 11.5		$ 11.5		$ 11.5
Warrants expiration term	5 years		5 years		5 years
Warrant liability	$ 10,830		$ 10,830		$ 29,616
Warrants
Class Of Warrant Or Right [Line Items]
Gain from change in fair value of warrant liability	$ 2,617	$ 16,150	$ 18,786	$ 36,764
Private Placement
Class Of Warrant Or Right [Line Items]
Warrants outstanding	10,280,000		10,280,000		10,280,000

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Stockholders' Equity - Additional Information (Details)	9 Months Ended
	Nov. 30, 2023 Vote $ / shares shares	Feb. 28, 2023 $ / shares shares
Class of Stock [Line Items]
Treasury stock, shares	176,654	176,654
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	304,564,709	302,582,007
Common stock, shares outstanding	304,388,055	302,405,353
Class V Common Stock
Class of Stock [Line Items]
Common stock, shares authorized	42,747,890
Common stock, par value | $ / shares	$ 0.0001
Common stock, shares issued	32,722,920	32,992,007
Common stock, shares outstanding	32,722,920	32,992,007
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	on a one-for-one basis to their Common Units which in essence allows each holder one vote per Common Unit
Treasury stock, shares	10,024,970	9,755,883

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Stockholders' Equity - Schedule of Changes in Outstanding Stock (Details)	9 Months Ended
	Nov. 30, 2023 shares
Class A Common Stock
Class of Stock [Line Items]
Common stock, shares outstanding	302,405,353
Conversion of Common Units	269,087	[1]
Vesting of restricted awards, net of shares withheld for taxes	1,304,734	[2]
Issaunce of common stock pursuant to stock-based awards	408,881	[3]
Common stock, shares, outstanding	304,388,055
Class V
Class of Stock [Line Items]
Common stock, shares outstanding	32,992,007
Conversion of Common Units	(269,087)	[1]
Common stock, shares, outstanding	32,722,920
Series B-1
Class of Stock [Line Items]
Common stock, shares outstanding	94
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. 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. See Note 28, Subsequent Events for information related to Common Units converted to Class A Common Stock after November 30, 2023.

[3] Issuance of Class A Common Stock associated with the restricted stock award grants.

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Noncontrolling Interests - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
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	$ 0.8	$ 0.6	$ 0.8	$ 3.2
E2open Holdings, LLC
Minority Interest [Line Items]
Noncontrolling interest percentage	9.70%		9.70%		9.80%
Noncontrolling interest number of common units held by participants	32,700,000		32,700,000		33,000,000
E2open Holdings, LLC | Class A Ordinary Shares
Minority Interest [Line Items]
Conversion of stock, shares issued			1
E2open Holdings, LLC | Class A Ordinary Shares | Convertible Common Stock
Minority Interest [Line Items]
Conversion of stock, shares issued	269,087	100,000	269,087	249,941
E2open Holdings, LLC | Class A Ordinary Shares | Common Stock
Minority Interest [Line Items]
Conversion of stock, amount issued	$ 0.8	$ 0.6	$ 0.8	$ 1.8
E2open Holdings, LLC | Class V common stock
Minority Interest [Line Items]
Conversion of stock, shares issued			1

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Other Comprehensive Loss - Accumulated Other Comprehensive Loss in Equity Section of Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Nov. 30, 2023	Aug. 31, 2023	May 31, 2023	Nov. 30, 2022	Aug. 31, 2022	May 31, 2022	Nov. 30, 2023	Nov. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Begining Balance			$ (68,603)				$ (68,603)
Other comprehensive gain							22,711
Total other comprehensive income (loss), net	$ 307	$ 14,234	8,170	$ 13,949	$ (41,962)	$ (30,700)	22,711	$ (58,713)
Ending Balance	(45,892)						(45,892)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Begining Balance			(67,747)				(67,747)
Other comprehensive gain							20,271
Total other comprehensive income (loss), net							20,271
Ending Balance	(47,476)						(47,476)
Unrealized Holding (Losses) Gains on Derivatives | Foreign Exchange Forward Contracts
Accumulated Other Comprehensive Income (Loss) [Line Items]
Begining Balance			$ (856)				(856)
Other comprehensive gain							729
Total other comprehensive income (loss), net							729
Ending Balance	(127)						(127)
Unrealized Holding (Losses) Gains on Derivatives | Interest Rate Collar Agreements
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive gain							1,711
Total other comprehensive income (loss), net							1,711
Ending Balance	$ 1,711						$ 1,711

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Other Comprehensive Loss - Additional Information (Details) - USD ($)	3 Months Ended	9 Months Ended
	Nov. 30, 2023	Nov. 30, 2023
Statement of Other Comprehensive Income [Abstract]
Income taxes recorded to other comprehensive loss	$ 0	$ 0

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Other Comprehensive Loss - Schedule of Effect of Amounts Reclassified Out of Unrealized Holding Losses for Foreign Exchange Forward Contracts Into Net Loss (Details) - Unrealized Holding Losses on Derivatives - Foreign Exchange Forward Contracts - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified out of unrealized holding losses	$ 88	$ 250	$ 305	$ 250
Cost of Revenue
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified out of unrealized holding losses	36	105	127	105
Research and Development
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified out of unrealized holding losses	35	94	119	94
Sales and Marketing
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified out of unrealized holding losses	2	3	6	3
General and Administrative
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified out of unrealized holding losses	$ 15	$ 48	$ 53	$ 48

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Other Comprehensive Loss - Schedule of Effect of Amounts Reclassified Out of Unrealized Gains for Interest Rate Collars as Offset to Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Nov. 30, 2023	Nov. 30, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified out of unrealized gains	$ (498)	$ (1,059)
$100 million Notional Interest Rate Collar
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified out of unrealized gains	(208)	(463)
$200 million Notional Interest Rate Collar
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified out of unrealized gains	$ (290)	$ (596)

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Other Comprehensive Loss - Schedule of Effect of Amounts Reclassified Out of Unrealized Gains for Interest Rate Collars as Offset to Interest Expense (Parenthetical) (Details) - USD ($) $ in Millions	Nov. 30, 2023	Mar. 31, 2023
Additional Interest Rate Collars [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Notional interest rate collar amount	$ 100.0
Zero Cost Interest Rate Collars
Accumulated Other Comprehensive Income (Loss) [Line Items]
Notional interest rate collar amount	$ 200.0	$ 300.0

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Earnings Per Share - Summary of Basic and Diluted Per Share Computations for Net (Loss) Income (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Nov. 30, 2023	Aug. 31, 2023	May 31, 2023	Nov. 30, 2022	Aug. 31, 2022	May 31, 2022	Nov. 30, 2023	Nov. 30, 2022
Numerator - basic:
Net (loss) income per share	$ (740,031)	$ (38,629)	$ (360,884)	$ 5,503	$ (409,585)	$ (12,621)	$ (1,139,544)	$ (416,703)
Less: Net (loss) income attributable to noncontrolling interests	(72,475)			698			(111,721)	(41,464)
Net (loss) income attributable to E2open Parent Holdings, Inc	(667,556)			4,805			(1,027,823)	(375,239)
Numerator - diluted:
Net (loss) income attributable to E2open Parent Holdings, Inc. - basic	(667,556)			4,805			(1,027,823)	(375,239)
Net (loss) income attributable to E2open Parent Holdings, Inc. - diluted	$ (667,556)			$ 4,805			$ (1,027,823)	$ (375,239)
Denominator - basic:
Weighted average shares outstanding - basic	303,848			302,201			303,188	301,822
Net (loss) income per share - basic	$ (2.2)			$ 0.02			$ (3.39)	$ (1.24)
Denominator - diluted:
Weighted average shares outstanding - basic	303,848			302,201			303,188	301,822
Weighted average effect of dilutive securities:
Weighted average shares outstanding - diluted	303,848			302,359			303,188	301,822
Diluted net (loss) income per common share	$ (2.2)			$ 0.02			$ (3.39)	$ (1.24)
Time-Based Units
Weighted average effect of dilutive securities:
Time based restricted stock				158

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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		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation	82,807,907	77,443,611	83,852,931	76,880,655
Series B-1
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation	94	94	94	94
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	29,079,872	29,079,872	29,079,872
Common Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation	32,879,559	33,126,073	32,954,797	33,350,756
Performance Based Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation	1,334,919	4,832,802	1,215,252	3,986,158
Time Based Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation	1,038,513		901,246
Performance Based Restricted Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation	3,837,349	2,101,221	3,514,740	2,059,595
Time Based Restricted Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation	8,449,869	2,303,641	9,778,141	2,404,272
Time Based Restricted Stock Awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation	187,824		408,881

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Share-Based Compensation - Additional Information (Details) - USD ($)				1 Months Ended			9 Months Ended		12 Months Ended
	Dec. 31, 2023	Oct. 11, 2023	Oct. 10, 2023	Nov. 30, 2023	May 31, 2023	May 31, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023	Feb. 28, 2022	Mar. 01, 2023	Mar. 01, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Vesting options		134,920
Vesting RSU's		147,606
Subsequent Event
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Percentage of accelerated remaining unvested awards	50.00%
Vesting options	189,039
Vesting RSU's	187,325
Minimum
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Performance target percentage					100.00%	100.00%
Performance Based Restricted Stock Units
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Vesting percentage		25.00%					50.00%
Number of unvested shares				3,514,740			3,514,740
RSUs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Vesting period							10 years
RSUs | Minimum
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Performance target percentage					100.00%	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				9,778,141			9,778,141
RSUs | Cash-Settled Units
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of unvested shares				37,479			37,479
Total intrinsic value of unvested units				$ 100,000			$ 100,000
RSAs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of shares, vested or expected to vest				408,881			408,881
Performance Based Options
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Options outstanding				1,215,252			1,215,252
Time Based Options
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Options outstanding				901,246			901,246
Senior Management
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Organic growth target									1 year	1 year
Vesting period									2 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
Performance target percentage							100.00%
Executive Officers and Senior Management | Retention time-based RSUs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of awards granted				2,052,680
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
2021 Incentive Plan
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Options outstanding				2,116,000			2,116,000	4,833,000	4,833,000	2,524,000
Unrecognized compensation cost				$ 2,600,000			$ 2,600,000
Aggregate intrinsic value of outstanding				0			0
Aggregate intrinsic value of vested and expected to vest, exercisable stock option				0			$ 0
2021 Incentive Plan | RSUs | Cash-Settled Units
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Vesting period							3 years
Unrecognized compensation cost				$ 100,000			$ 100,000
Number of unvested shares				37,000			37,000	25,000	25,000
Number of awards granted							24,000	25,000
2021 Incentive Plan | RSUs and RSAs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Unrecognized compensation cost				$ 53,200,000			$ 53,200,000
Intrinsic value of outstanding stock option awards				$ 49,900,000			$ 49,900,000
Number of unvested shares				13,702,000			13,702,000	6,618,000	6,475,000	2,103,000
Number of awards granted							12,235,000	5,645,000
2021 Incentive Plan | RSAs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Shares available for grant				133,780			133,780
2021 Incentive Plan | Mr. Andrew Appel | RSAs | Initial Six Months Term
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Vesting period			6 months
Grant value of RSA's			$ 685,000
Grant value of RSA's			275,101
2021 Incentive Plan | Mr. Andrew Appel | RSAs | Post Initial Six Months Term
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Vesting period			1 month				5 months
Grant value of RSA's			$ 100,000
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				9,290,911			9,290,911
2021 Incentive Plan | Class A ordinary shares | RSUs | Cash-Settled Units
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Intrinsic value of outstanding restricted stock units				$ 100,000			$ 100,000
2021 Evergreen Incentive Plan
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Common stock reserved for issuance											7,304,646	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	9 Months Ended		12 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023	Feb. 28, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of Shares, Beginning balance	4,833	2,524	2,524
Number of Shares, Granted	1,232	3,275
NUmber of shares, Forfeited/Expired	(3,949)	(966)
Number of Shares, Ending balance	2,116	4,833	4,833	2,524
Number of Shares, Vested and exercisable	807	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	$ 8.42	$ 9.83	$ 9.83
Weighted Average Exercise Price Per Share, Granted	4.65	7.76
Weighted Average Exercise Price Per Share, Forfeited/Expired	7.82	9.85
Weighted Average Exercise Price Per Share, Ending balance	7.36	8.42	$ 8.42	$ 9.83
Weighted Average Exercise Price Per Share, Vested and exercisable	$ 9.28	$ 9.82
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Term (in years)	6 years 9 months 18 days	8 years 8 months 12 days	8 years 6 months	9 years
Weighted Average Remaining Contractual Term (in years), Vested and exercisable	3 years 7 months 6 days	5 years 2 months 12 days

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Share-Based Compensation - Schedule of Activity under the 2021 Incentive Plan Related to RSUs and RSAs (Details) - $ / shares	9 Months Ended		12 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023	Feb. 28, 2022
RSUs | Cash-Settled Units
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of Shares, Ending balance	37,479
2021 Incentive Plan | RSUs | Cash-Settled Units
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of Shares, Beginning balance	25,000
Number of Shares, Granted	24,000	25,000
Number of Shares, Released	(8,000)
Number of Shares, Canceled and forfeited	(4,000)
Number of Shares, Ending balance	37,000	25,000	25,000
Number of Shares, Awards not vested, Beginning balance	$ 6.07
Weighted Average Market Value Per Share, Granted	5.6	$ 6.07
Weighted Average Market Value Per Share, Released	6.07
Weighted Average Market Value Per Share, Canceled and forfeited	5.96
Weighted Average Market Value Per Share, Ending balance	$ 5.78	$ 6.07	$ 6.07
Weighted Average Remaining Contractual Term (in years)	2 years 3 months 18 days	2 years 9 months 18 days	2 years 7 months 6 days
2021 Incentive Plan | RSUs and RSAs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of Shares, Beginning balance	6,475,000	2,103,000	2,103,000
Number of Shares, Granted	12,235,000	5,645,000
Number of Shares, Added by performance factor	39,000	300,000
Number of Shares, Released	1,968,000	870,000
Number of Shares, Canceled and forfeited	(3,079,000)	(560,000)
Number of Shares, Ending balance	13,702,000	6,618,000	6,475,000	2,103,000
Number of Shares, Awards not vested, Beginning balance	$ 8.44	$ 12.47	$ 12.47
Weighted Average Market Value Per Share, Granted	5.26	7.45
Weighted Average Market Value Per Share, Added by performance factor	9.02	12.87
Weighted Average Market Value Per Share, Released	8.36	12.12
Weighted Average Market Value Per Share, Canceled and forfeited	6.83	10
Weighted Average Market Value Per Share, Ending balance	$ 5.77	$ 8.46	$ 8.44	$ 12.47
Weighted Average Remaining Contractual Term (in years)	2 years 1 month 6 days	2 years 7 months 6 days	2 years 4 months 24 days	2 years 8 months 12 days

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Share-Based Compensation - Summary of Estimated Grant-Date Fair Values Assumptions (Details)	9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected term (in years)		6 years 3 months
Expected equity price volatility, minimum	48.97%
Expected equity price volatility, maximum	56.84%
Expected equity price volatility		44.17%
Risk-free interest rate, minimum	3.38%
Risk-free interest rate, maximum	5.30%
Risk-free interest rate		2.91%
Expected dividend yield	0.00%	0.00%
Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected term (in years)	6 years 3 months
Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected term (in years)	8 months 4 days

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Share-Based Compensation - Schedule of Functional Classification in Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based and unit-based compensation	$ 6,841	$ 4,797	$ 18,728	$ 13,139
Cost of Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based and unit-based compensation	1,304	545	3,059	856
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based and unit-based compensation	1,665	938	4,177	2,181
Sales and Marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based and unit-based compensation	1,556	901	3,444	2,560
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based and unit-based compensation	$ 2,316	$ 2,413	$ 8,048	$ 7,542

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Leases - Additional Information (Details)	3 Months Ended			9 Months Ended
	Nov. 30, 2023 USD ($) Sublease	Nov. 30, 2022 USD ($)	Aug. 31, 2022 USD ($)	Nov. 30, 2023 USD ($) Sublease	Nov. 30, 2022 USD ($)	Feb. 28, 2023 USD ($)
Lessee Lease Description [Line Items]
Operating lease expiration date			2026-02	2030-06
Operating lease, existence of option to extend				true
Number of subleases | Sublease	5			5
Lease deposit	$ 3,500,000			$ 3,500,000		$ 4,700,000
Office lease, impairment loss	$ 100,000			$ 600,000
Impairment of leasehold improvements		$ 1,800,000			$ 4,100,000
Financing lease expiration date				2028-11
Short-term lease expense		$ 0			$ 0
Early termination fee			$ 200,000
Gain on the write-off of the remaining ROU asset and liability			$ 200,000	$ 187,000
Vehicle
Lessee Lease Description [Line Items]
Operating lease expiration date				2027-05
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	Nov. 30, 2023	Feb. 28, 2023
Lease, Cost [Abstract]
Right-of-use (ROU) operating asset	$ 21,580	$ 18,758
Finance lease right-of-use asset	$ 4,175	$ 3,358
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, Plant and Equipment, Net	Property, Plant and Equipment, Net
Total right-of-use assets	$ 25,755	$ 22,116
Operating lease liability - current	7,317	7,622
Operating lease liability	17,959	15,379
Finance lease liability - current	1,120	2,582
Finance lease liability	3,188	1,049
Total lease liabilities	$ 29,584	$ 26,632

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Leases - Summary of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Finance lease cost:
Amortization of right-of-use asset	$ 135	$ 508	$ 1,319	$ 1,686
Interest on lease liability	23	35	124	161
Finance lease cost	158	543	1,443	1,847
Operating lease cost:
Operating lease cost	1,722	2,239	5,452	5,505
Variable lease cost	823	510	2,674	3,810
Sublease income	(209)	(46)	(440)	(482)
Operating net lease cost	2,336	2,703	7,686	8,833
Total net lease cost	$ 2,494	$ 3,246	$ 9,129	$ 10,680

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Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$ 6,378	$ 7,365

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Leases - Weighted-average Remaining Lease Terms and Discount Rates of Leases (Details)	Nov. 30, 2023	Nov. 30, 2022
Lessee, Lease, Description [Line Items]
Weighted-average remaining lease term (in years): Finance lease	4 years 1 month 20 days	8 months 8 days
Weighted-average remaining lease term (in years): Operating lease	3 years 11 months 23 days	3 years 9 months 7 days
Weighted-average discount rate: Finance lease	7.66%	9.20%
Weighted-average discount rate: Operating lease	6.95%	5.43%

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Leases - Undiscounted Future Cash Flows Utilized in Calculation of Lease Liabilities (Details) $ in Thousands	Nov. 30, 2023 USD ($)
Operating Leases
December 2023 - February 2024	$ 2,315
2025	8,483
2026	6,647
2027	5,462
2028	3,299
Thereafter	2,927
Total	29,133
Less: Present value discount	(3,857)
Lease liabilities	25,276
Finance Leases
December 2023 - February 2024	391
2025	1,357
2026	1,256
2027	748
2028	748
Thereafter	561
Total	5,061
Less: Present value discount	(753)
Lease liabilities	$ 4,308

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Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
Income Tax Disclosure [Line Items]
Income tax benefit	$ 5,413	$ 7,877	$ 73,827	$ 130,010
Tax rate	0.70%	331.80%	6.10%	23.80%
Loss before income tax provision	$ 745,444	$ 2,374	$ 1,213,371	$ 546,713
Income tax benefit, net of a valuation allowance	(154,500)		(179,900)
Income tax benefit primarily resulted from the discrete impact of goodwill impairment	(3,700)		(67,600)
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, 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 is effective for taxable years beginning after December 31, 2022 and the excise tax applies to stock repurchases after December 31, 2022. The alternative minimum tax would not be applicable in our next fiscal year as it is based on a three-year average annual adjusted financial statement income in excess of $1 billion. We continue to 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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Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions			3 Months Ended	9 Months Ended
	Sep. 20, 2023	Sep. 14, 2023	Aug. 31, 2023	Nov. 30, 2023
Loss Contingencies [Line Items]
Agreement date		September 14, 2023
Loss contingency, settlement agreement terms		On September 14, 2023, the parties agreed to a settlement for $17.8 million which resolved the matter and released us from all alleged claims.
Loss contingency, settlement amount	$ 17.8			$ 17.8
Litigation settlement expense		$ 17.8
Uncollected Receivables | Selling, General and Administrative Expenses
Loss Contingencies [Line Items]
Litigation settlement expense			$ 17.8

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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	9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Supplemental Cash Flow Information [Abstract]
Interest	$ 76,748	$ 29,325
Income taxes	6,232	7,669
Non-cash investing and financing activities:
Capital expenditures included in accounts payable and accrued liabilities	1,053	263
Right-of-use assets obtained in exchange for operating lease obligations	8,708	2,559
Shares withheld for taxes on vesting of restricted stock	3,059	1,593
Conversion of Common Units to Class A Common Stock	$ 836	$ 1,809

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Subsequent Events - Additional Information (Details) - USD ($) $ in Millions		1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 01, 2024	Dec. 31, 2023	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Subsequent Event [Line Items]
Decrease to noncontrolling interests			$ 0.8	$ 0.6	$ 0.8	$ 3.2
Forecast | Class A Common Stock
Subsequent Event [Line Items]
Number of share converted	1,497,316
Conversion of stock,converted value	$ 6.7
Decrease to noncontrolling interests	$ 6.7
Subsequent Event | Retention time-based Restricted stock Unit [Member]
Subsequent Event [Line Items]
Number of Shares, Granted		434,784
Vesting period		18 months