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Mar 31, 2022

Q2 Q1 2022 Earnings Report

Q2 Holdings announced first quarter 2022 financial results.

Key Takeaways

Q2 Holdings' first quarter results showed a 15% year-over-year increase in revenue to $134.1 million. The company signed several new deals in digital lending and banking, and saw strong performance from its Emerging Businesses. They are raising their full-year guidance, which reflects confidence in a reacceleration of revenue growth and margin expansion exiting 2022 and into 2023.

Revenue for the first quarter was $134.1 million, up 15 percent year-over-year.

GAAP gross margin for the first quarter was 45.1 percent.

GAAP net loss for the first quarter was $23.6 million.

Adjusted EBITDA for the first quarter was $8.1 million.

Total Revenue
$134M
Previous year: $117M
+15.1%
EPS
$0.03
Previous year: $0.1
-70.0%
Gross Margin
45.1%
Previous year: 45.7%
-1.3%
Adjusted EBITDA
$8.06M
Previous year: $9.9M
-18.6%
Gross Profit
$60.4M
Previous year: $53.2M
+13.5%
Cash and Equivalents
$226M
Previous year: $371M
-39.2%
Free Cash Flow
-$8.37M
Previous year: -$11.6M
-27.8%
Total Assets
$1.36B
Previous year: $1.42B
-4.0%

Q2

Q2

Forward Guidance

Q2 Holdings is providing guidance for its second quarter of 2022 and full year 2022.

Positive Outlook

  • Total non-GAAP revenue of $139.5 million to $141.0 million for Q2 2022.
  • This revenue would represent year-over-year growth of 12 to 14 percent.
  • Adjusted EBITDA of $7.4 million to $8.9 million, representing 5 to 6 percent of non-GAAP revenue for the quarter.
  • Total non-GAAP revenue of $577.5 million to $581.5 million for full year 2022.
  • This revenue would represent year-over-year growth of 15 percent to 16 percent.

Challenges Ahead

  • Adjusted EBITDA of $41.4 million to $44.4 million for the full year, representing 7 to 8 percent of non-GAAP revenue for the year.
  • The ultimate outcome of exclusions of items such as depreciation and amortization, stock-based compensation, acquisition-related costs, interest and other (income) expense, income taxes, unoccupied lease charges, loss on extinguishment of debt and the impact to deferred revenue from purchase accounting cannot be predicted with reasonable certainty.
  • These excluded items could be material to results computed in accordance with GAAP in future periods.
  • Forward-looking statements are based upon Q2’s historical performance and its current plans, estimates, and expectations and are not a representation that such plans, estimates or expectations will be achieved.
  • Adverse impacts of the COVID-19 pandemic on Q2’s business operations and on global economic and financial markets, including on Q2’s customers, partners and suppliers and employees and business.