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Dec 31, 2024
Q2 Q4 2024 Earnings Report
Key Takeaways
Q2 Holdings reported strong Q4 revenue growth of 12.91% YoY, driven by record bookings in digital banking and relationship pricing. The company achieved its best cross-sale and renewal quarter ever, alongside improved profitability.
Forward Guidance
Q2 Holdings expects continued revenue growth in FY25, projecting an 11-12% increase YoY, driven by digital banking expansion, strong renewal activity, and strategic partnerships.
Positive Outlook
- Revenue guidance for Q1 2025 set between $184M and $188M (+11% to +14% YoY)
- FY25 revenue guidance projected at $772M - $779M (+11% to +12% YoY)
- Annualized recurring revenue growth of 15% YoY to $682M
- Strong renewal activity, with bookings from renewals up 80% YoY
- Strategic partnerships, including expansion with Wells Fargo, supporting digital banking solutions
Challenges Ahead
- Operating margin remains negative despite improvements
- Debt obligations remain high, with total liabilities of $777M
- Revenue concentration in digital banking may pose risk if market conditions shift
- Increased competition in fintech space could pressure future growth
Historical Earnings Impact
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Avg. Return Before/After Earnings
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