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Mar 31, 2020
Q2 Q1 2020 Earnings Report
Q2 Holdings' first quarter performance was solid amidst COVID-19 impacts.
Key Takeaways
Q2 Holdings reported a 30% year-over-year increase in revenue, reaching $92.4 million for the first quarter. The company signed new Tier 1 digital banking and lending deals and onboarded approximately 800,000 users. However, the company anticipates a slowdown in new business bookings and potential project delays due to the COVID-19 pandemic.
Revenue for the first quarter was $92.4 million, a 30% increase year-over-year.
GAAP gross margin was 42.5%, down from 47.8% in the prior-year quarter.
The company signed two new Tier 1 digital banking deals and two new Tier 1 digital lending deals.
Approximately 15.4 million registered users were on the Q2 platform at the end of the quarter, representing an 18% year-over-year growth.
Forward Guidance
Q2 Holdings provided guidance for the second quarter of 2020 and revised guidance for the full year 2020, anticipating the impacts of the COVID-19 pandemic on its operations and financial results.
Positive Outlook
- Total Non-GAAP revenue of $94.0 million to $96.0 million for Q2 2020, representing year-over-year growth of 21 percent to 24 percent.
- Adjusted EBITDA of $3.0 million to $4.0 million for Q2 2020.
- Total Non-GAAP revenue of $393.0 million to $400.0 million for full year 2020, representing year-over-year growth of 24 percent to 26 percent.
- Adjusted EBITDA of $16.0 million to $19.0 million for full year 2020.
- Company took proactive measures to limit travel and marketing related spend in March as we began to experience the impacts of COVID-19
Challenges Ahead
- Anticipate a slowdown in new business bookings.
- Decisions to delay implementations in the coming months.
- Being cautious as a result of the uncertainties and risks posed by COVID-19.
Historical Earnings Impact
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