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Sep 30, 2023

Q2 Q3 2023 Earnings Report

Q2 Holdings announced third quarter 2023 financial results, demonstrating growth in revenue and adjusted EBITDA.

Key Takeaways

Q2 Holdings reported revenue of $155.0 million, a 7% increase year-over-year, and adjusted EBITDA of $19.7 million, up from $10.8 million in the prior-year quarter. The company signed several new and expansion deals, including significant digital banking contracts. Q2 is raising its adjusted EBITDA outlook for the remainder of the year.

Signed one Enterprise and one Tier 1 digital banking contract.

Signed two Enterprise and one Tier 1 digital lending contract.

Signed one of their largest fintech customers to a Helix contract to expand the use of embedded finance solutions.

Exited the third quarter with over 22.0 million registered users on the Q2 digital banking platform, representing 5 percent year-over-year growth and 2 percent sequential growth.

Total Revenue
$155M
Previous year: $145M
+7.1%
EPS
$0.21
Previous year: $0.1
+110.0%
Gross Margin
47.8%
Previous year: 46.2%
+3.5%
Adjusted EBITDA
$19.7M
Previous year: $10.8M
+82.4%
Gross Profit
$74.1M
Previous year: $66.9M
+10.9%
Cash and Equivalents
$156M
Previous year: $193M
-19.0%
Free Cash Flow
$15.5M
Previous year: $2.31M
+569.2%
Total Assets
$1.18B
Previous year: $1.33B
-11.6%

Q2

Q2

Forward Guidance

Q2 Holdings is providing guidance for its fourth quarter of 2023 and updated guidance for its full-year 2023.

Positive Outlook

  • Total non-GAAP revenue of $160.3 million to $163.3 million, which would represent year-over-year growth of 9 percent to 11 percent.
  • Adjusted EBITDA of $21.2 million to $23.2 million, representing 13 to 14 percent of non-GAAP revenue for the quarter.
  • Total non-GAAP revenue of $622.5 million to $625.5 million, which would represent year-over-year growth of 10 percent.
  • Adjusted EBITDA of $75.0 million to $77.0 million, representing 12 percent of non-GAAP revenue for the year.