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Dec 31, 2021
Q2 Q4 2021 Earnings Report
Announced fourth quarter and full-year 2021 financial results.
Key Takeaways
Q2 Holdings reported strong Q4 2021 results with revenue up 21% year-over-year. The company delivered its second largest bookings quarter and best half-year of bookings performance in company history.
Signed three Tier 1 digital banking contracts.
Signed five enterprise and two Tier 1 digital lending contracts to utilize our loan pricing solutions.
Signed two Tier 1 digital lending contracts to utilize our treasury onboarding solution.
Annualized Recurring Revenue increased to $574.2 million, up 24% year-over-year from $464.2 million at the end of 2020.
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Forward Guidance
Q2 Holdings is providing guidance for its first quarter of 2022 and full-year 2022.
Positive Outlook
- Total non-GAAP revenue of $131.5 million to $133.0 million for Q1 2022, which would represent year-over-year growth of 12 to 14 percent.
- Adjusted EBITDA of $7.7 million to $8.7 million, representing 6 to 7 percent of non-GAAP revenue for Q1 2022.
- Total non-GAAP revenue of $576.0 million to $581.0 million for full-year 2022, which would represent year-over-year growth of 15 percent to 16 percent.
- Adjusted EBITDA of $40.9 million to $43.9 million, representing 7 to 8 percent of non-GAAP revenue for full-year 2022.
- Cash flow from operations for the fourth quarter was $39.3 million
Challenges Ahead
- Q2 Holdings is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.
- These excluded items could be material to our results computed in accordance with GAAP in future periods.
- Risk of increased competition in its existing markets and as it enters new sections of the market with Tier 1 customers, new markets with Alt-FIs and fintechs and new products and services
- Risk that COVID-19, government actions or other factors continue to negatively impact or disrupt the markets for Q2's solutions and that the markets for Q2's solutions do not return to normal or grow as anticipated, in particular with respect to Enterprise and Tier 1 customers and Alt-FI and fintech customers
- Risk that Q2's increased focus on selling to larger Enterprise or Tier 1 customers may result in greater uncertainty and variability in Q2's business and sales results