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Dec 31, 2019

Q2 Q4 2019 Earnings Report

Announced fourth quarter and full-year 2019 financial results.

Key Takeaways

Q2 Holdings reported revenue of $86.84 million, a 29% increase year-over-year. The company's non-GAAP gross margin was 56.8%, and adjusted EBITDA reached $10.6 million. They ended the year with over $1 billion in committed backlog.

Signed Two Tier 1 banks to digital banking contracts, including a Top 50 Bank in the United States.

Signed a major alternative lender in North America to a Cloud Lending contract, the largest Cloud Lending deal in company history.

Signed Two Tier 1 banks to PrecisionLender contracts, including a Top 5 Canadian Bank and a $15 billion bank in the Southeast.

Exited the fourth quarter with approximately 14.6 million registered users on the Q2 platform, representing 14 percent year-over-year and 4 percent sequential growth from the third quarter.

Total Revenue
$86.8M
Previous year: $67.2M
+29.3%
EPS
$0.38
Previous year: $0.08
+375.0%
GAAP Gross Margin
48.4%
Adjusted EBITDA
$10.6M
Gross Profit
$42M
Cash and Equivalents
$100M
Free Cash Flow
$525K
Total Assets
$1.01B

Q2

Q2

Forward Guidance

Q2 Holdings is providing guidance for its first quarter of 2020 and full year 2020. For the first quarter, they anticipate non-GAAP revenue between $92.0 million and $94.0 million and an adjusted EBITDA between negative $3.0 million and negative $2.0 million. For the full year, they expect non-GAAP revenue between $412.0 million and $416.0 million and adjusted EBITDA between $16.0 million and $19.0 million.

Positive Outlook

  • Total Non-GAAP revenue of $92.0 million to $94.0 million, which would represent year-over-year growth of 29 percent to 32 percent.
  • Adjusted EBITDA of negative $3.0 million to negative $2.0 million.
  • Total Non-GAAP revenue of $412.0 million to $416.0 million, which would represent year-over-year growth of 30 percent to 31 percent.
  • Adjusted EBITDA of $16.0 million to $19.0 million.