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Dec 31, 2023
Q2 Q4 2023 Earnings Report
Announced fourth quarter and full-year 2023 financial results.
Key Takeaways
Q2 Holdings reported Q4 revenue of $162.1 million, up 11% year-over-year, and adjusted EBITDA of $23.2 million. The company closed out 2023 with its best bookings performance in company history.
Signed four Tier 1 digital banking contracts.
Signed a new Top 4 U.S. bank to a relationship pricing solution contract.
Subscription Annualized Recurring Revenue increased to $593.9 million, up 19 percent year-over-year.
Remaining Performance Obligation total, or Backlog, increased by $269.2 million sequentially, resulting in total committed Backlog of approximately $1.8 billion at quarter-end.
Forward Guidance
Q2 Holdings is providing guidance for its first quarter of 2024 and full-year 2024.
Positive Outlook
- Total non-GAAP revenue of $161.7 million to $164.7 million, which would represent year-over-year growth of 6 to 8 percent.
- Adjusted EBITDA of $22.0 million to $24.0 million, representing 13 to 15 percent of non-GAAP revenue for the quarter.
- Total non-GAAP revenue of $683.0 million to $689.0 million, which would represent year-over-year growth of 9 to 10 percent.
- Adjusted EBITDA of $107.0 million to $111.0 million, representing approximately 16 percent of non-GAAP revenue for the year.
- Average annual subscription revenue growth of approximately 14 percent (2024 through 2026).
Challenges Ahead
- GAAP net loss is the most comparable GAAP measure to adjusted EBITDA.
- Q2 Holdings is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.
- Q2 Holdings has not provided guidance for GAAP net loss or a reconciliation of the forward-looking adjusted EBITDA guidance to GAAP net loss.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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