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Sep 30, 2022
Q2 Q3 2022 Earnings Report
Q2 Holdings announced its financial results for the third quarter of 2022.
Key Takeaways
Q2 Holdings reported Q3 2022 revenue of $144.8 million, a 14% year-over-year increase. The company's adjusted EBITDA was $10.8 million, up from $7.3 million in the prior-year quarter. While total revenue came in below guidance due to lower-than-expected discretionary services and transactional revenue, the company anticipates continued pressure on lower margin revenue streams.
Q2 Holdings' Q3 revenue reached $144.8 million, reflecting a 14% year-over-year increase.
The company's GAAP gross margin for Q3 was 46.2%, an increase from 45.0% in the prior-year quarter.
Q2 Holdings reported a GAAP net loss of $27.8 million for Q3, compared to a net loss of $31.6 million in the prior-year quarter.
Adjusted EBITDA for Q3 was $10.8 million, up from $7.3 million in the prior-year quarter.
Forward Guidance
Q2 Holdings is providing guidance for its fourth quarter of 2022 and updated guidance for its full-year 2022. Total non-GAAP revenue of $148.4 million to $150.4 million, which would represent year-over-year growth of 12 percent to 14 percent. Adjusted EBITDA of $10.5 million to $12.5 million, representing 7 to 8 percent of non-GAAP revenue for the year.
Positive Outlook
- Total non-GAAP revenue of $148.4 million to $150.4 million for Q4 2022.
- Year-over-year revenue growth of 12% to 14% for Q4 2022.
- Adjusted EBITDA of $10.5 million to $12.5 million for Q4 2022.
- Adjusted EBITDA represents 7% to 8% of non-GAAP revenue for Q4 2022.
- Total non-GAAP revenue of $568.0 million to $570.0 million for full year 2022.
Challenges Ahead
- Uncertainty regarding the ultimate outcome of GAAP exclusions.
- Potential material impact of excluded items on GAAP results in future periods.
- Continued pressure on lower margin revenue streams.
Historical Earnings Impact
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