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Mar 31, 2023

Q2 Q1 2023 Earnings Report

Q2 Holdings announced strong financial results and sales execution, exceeding revenue and adjusted EBITDA guidance, driven by subscription revenue growth and cost efficiencies.

Key Takeaways

Q2 Holdings reported a revenue of $153.0 million, a GAAP gross margin of 47.9%, and a GAAP net loss of $0.5 million for the first quarter of 2023. The company signed three Tier 1 digital banking contracts and experienced growth in registered users on the Q2 digital banking platform.

Revenue for the first quarter was $153.0 million, up 14 percent year-over-year.

GAAP gross margin for the first quarter was 47.9 percent, up from 45.1 percent in the prior-year quarter.

GAAP net loss for the first quarter was $0.5 million, compared to a net loss of $23.6 million for the prior-year quarter.

Adjusted EBITDA for the first quarter was $16.5 million, up from $8.1 million for the prior-year quarter.

Total Revenue
$153M
Previous year: $134M
+14.1%
EPS
$0.19
Previous year: $0.03
+533.3%
Gross Margin
47.9%
Previous year: 45.1%
+6.2%
Adjusted EBITDA
$16.5M
Previous year: $8.06M
+104.8%
Gross Profit
$73.3M
Previous year: $60.4M
+21.4%
Cash and Equivalents
$121M
Previous year: $226M
-46.2%
Free Cash Flow
$2.86M
Previous year: -$8.37M
-134.2%
Total Assets
$1.18B
Previous year: $1.36B
-13.2%

Q2

Q2

Forward Guidance

Q2 Holdings provided guidance for its second quarter of 2023 and updated guidance for its full-year 2023.

Positive Outlook

  • Total non-GAAP revenue of $153.1 million to $155.1 million for Q2 2023, representing year-over-year growth of 9 percent to 10 percent.
  • Adjusted EBITDA of $14.0 million to $16.0 million for Q2 2023, representing 9 to 10 percent of non-GAAP revenue.
  • Total non-GAAP revenue of $618.0 million to $630.0 million for full-year 2023, representing year-over-year growth of 9 percent to 11 percent.
  • Adjusted EBITDA of $67.0 million to $71.0 million for full-year 2023, representing 11 percent of non-GAAP revenue for the year.