Sign In  |  Register  |  About Walnut Creek Guide  |  Contact Us

Walnut Creek, CA
September 01, 2020 1:43pm
7-Day Forecast | Traffic
  • Search Hotels in Walnut Creek Guide

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Q2 Holdings, Inc. Announces Third Quarter 2023 Financial Results

Q2 Holdings, Inc. (NYSE:QTWO), a leading provider of digital transformation solutions for banking and lending, today announced results for its third quarter ending September 30, 2023.

GAAP Results for the Third Quarter 2023

  • Revenue for the third quarter of $155.0 million, up 7 percent year-over-year and flat from the second quarter of 2023.
  • GAAP gross margin for the third quarter of 47.8 percent, up from 46.2 percent in the prior-year quarter and flat with 47.8 percent in the second quarter of 2023.
  • GAAP net loss for the third quarter of $23.2 million compared to GAAP net losses of $27.8 million for the prior-year quarter and $23.6 million for the second quarter of 2023.

Non-GAAP Results for the Third Quarter 2023

  • Non-GAAP revenue for the third quarter of $155.0 million, up 7 percent year-over-year and flat from the second quarter of 2023.
  • Non-GAAP gross margin for the third quarter of 53.9 percent, up from 52.1 percent for the prior-year quarter and down from 54.2 percent for the second quarter of 2023.
  • Adjusted EBITDA for the third quarter of $19.7 million, up from $10.8 million for the prior-year quarter and $17.6 million for the second quarter of 2023.

For a reconciliation of our GAAP to non-GAAP results, please see the tables below.

“In the third quarter, we saw financial institutions' focus on deposit growth drive strong demand for our solutions,” said Q2 CEO Matt Flake. “Our track record of innovation and our focus on customer experience helped us capitalize on that demand in the quarter—we signed a number of net new and expansion deals, including two of the top 10 largest digital banking deals in company history. When you consider our recent execution and the strength of our pipeline, we're confident in our ability to deliver on our profitable growth strategy for the remainder of the year and into 2024.”

Third Quarter Highlights

  • Signed one Enterprise and one Tier 1 digital banking contract including a:
    • Top 20 U.S. bank to utilize our commercial and small business banking solutions; and
    • Tier 1 U.S. bank to utilize our retail, small business and commercial banking solutions.
  • Signed two Enterprise and one Tier 1 digital lending contract including:
    • Expansions with two Top 10 U.S. banks utilizing our loan and relationship pricing solutions; and
    • An expansion with a Tier 1 U.S. bank to utilize our loan and relationship pricing solutions.
  • Signed one of our largest fintech customers to a Helix contract to expand the use of our embedded finance solutions.
  • Supported a digital-only brand launch for a U.S. bank, utilizing our Helix platform.
  • Continued investment in innovation, highlighted by the recent announcements of Q2 Fabric and Andi Copilot.
  • 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.

"We delivered solid results in the quarter, with adjusted EBITDA that once again exceeded the high end of our guidance,” said David Mehok, Q2 CFO. “We continue to drive meaningful profitability expansion, with an increase of over 500 basis points of adjusted EBITDA margin for the quarter compared to the prior year period. Based on the expected acceleration of subscription revenue and increased cost efficiencies in the fourth quarter, we are raising our adjusted EBITDA outlook for the remainder of the year.”

As of November 1, 2023, Q2 Holdings is providing guidance for its fourth quarter of 2023 and updated guidance for its full-year 2023, which represents Q2 Holdings’ current estimates on Q2 Holdings’ operations and financial results. The financial information below represents forward-looking, non-GAAP financial information, including estimates of non-GAAP revenue and adjusted EBITDA. GAAP net loss is the most comparable GAAP measure to adjusted EBITDA. Adjusted EBITDA differs from GAAP net loss in that it excludes items such as depreciation and amortization, stock-based compensation, transaction-related costs, interest and other (income) expense, income taxes, lease and other restructuring charges, (gain) loss on extinguishment of debt and the impact to deferred revenue from purchase accounting. Q2 Holdings is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Q2 Holdings has not provided guidance for GAAP net loss or a reconciliation of the forward-looking adjusted EBITDA guidance to GAAP net loss. However, it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods.

Q2 Holdings is providing guidance for its fourth quarter of 2023 as follows:

  • 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.

Q2 Holdings is providing updated guidance for the full-year 2023 as follows:

  • 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.

Conference Call Details

Date:

Wednesday, November 1, 2023

 

Time:

5:00 p.m. EDT

 

Hosts:

Matt Flake, CEO / David Mehok, CFO / Kirk Coleman, President / Jonathan Price, EVP Strategy and Emerging Businesses

 

Conference Call Registration:

https://conferencingportals.com/event/sPCVBfoJ

 

Webcast Registration:

https://events.q4inc.com/attendee/336425414

 

 

 

 

All participants must register using the above links (either the webcast or conference call). A webcast of the conference call and financial results will be accessible from the investor relations section of the Q2 website at http://investors.Q2.com/. In addition, a live conference call dial-in will be available upon registration. Participants should dial in at least 10 minutes before the start of the conference call. An archived replay of the webcast will be available on this website for a limited time after the call. Q2 has used, and intends to continue to use, its investor relations website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Q2 Holdings, Inc.

Q2 is a leading provider of digital banking and lending solutions to banks, credit unions, alternative finance companies, and fintechs in the U.S. and internationally. Q2’s comprehensive solution set allows its customers to better onboard, grow and serve their consumer, small business and corporate clients. Headquartered in Austin, Texas, Q2 has offices throughout the world and is publicly traded on the NYSE under the stock symbol QTWO. To learn more, please visit Q2.com. Follow us on LinkedIn and X to stay up-to-date.

Use of Non-GAAP Measures

Q2 uses the following non-GAAP financial measures: non-GAAP revenue; adjusted EBITDA; non-GAAP gross margin; non-GAAP gross profit; non-GAAP sales and marketing expense; non-GAAP research and development expense; non-GAAP general and administrative expense; non-GAAP operating expense; non-GAAP operating income (loss); and free cash flow. Management believes that these non-GAAP financial measures are useful measures of operating performance because they exclude items that Q2 does not consider indicative of its core performance.

In the case of non-GAAP revenue, Q2 adjusts revenue to exclude the impact to deferred revenue from purchase accounting adjustments. In the case of adjusted EBITDA, Q2 adjusts net loss for such items as interest and other (income) expense, taxes, depreciation and amortization, stock-based compensation, transaction-related costs, lease and other restructuring charges, (gain) loss on extinguishment of debt and the impact to deferred revenue from purchase accounting. In the case of non-GAAP gross margin and non-GAAP gross profit, Q2 adjusts gross profit and gross margin for stock-based compensation, amortization of acquired technology, transaction-related costs, lease and other restructuring charges and the impact to deferred revenue from purchase accounting. In the case of non-GAAP sales and marketing expense, non-GAAP research and development expense, and non-GAAP general and administrative expense, Q2 adjusts the corresponding GAAP expense to exclude stock-based compensation. Non-GAAP operating expense is calculated by taking the sum of non-GAAP sales and marketing expenses, non-GAAP research and development expense, and non-GAAP general and administrative expense. In the case of non-GAAP operating income (loss), Q2 adjusts operating income (loss), for stock-based compensation, transaction-related costs, amortization of acquired technology, amortization of acquired intangibles, lease and other restructuring charges, and the impact to deferred revenue from purchase accounting. In the case of free cash flow, Q2 adjusts net cash provided by (used in) operating activities for purchases of property and equipment and capitalized software development costs.

There are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Certain items that are excluded from these non-GAAP financial measures can have a material impact on operating and net income (loss). As a result, these non-GAAP financial measures have limitations and should be considered in addition to, not as a substitute for or superior to, the closest GAAP measures, or other financial measures prepared in accordance with GAAP. A reconciliation to the closest GAAP measures of these non-GAAP measures is contained in tabular form on the attached unaudited condensed consolidated financial statements.

Q2’s management uses these non-GAAP measures as measures of operating performance; to prepare Q2’s annual operating budget; to allocate resources to enhance the financial performance of Q2’s business; to evaluate the effectiveness of Q2’s business strategies; to provide consistency and comparability with past financial performance; to facilitate a comparison of Q2’s results with those of other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results; and in communication with our board of directors concerning Q2’s financial performance.

Forward-looking Statements

This press release contains forward-looking statements, including statements about: our continued execution and the strength of our pipeline; our ability to deliver on our profitable growth strategy for the remainder of the year and into 2024; expected acceleration of subscription revenue; increased cost efficiencies in the fourth quarter; and Q2’s quarterly and annual financial guidance. The forward-looking statements contained in this press release are based upon Q2’s historical performance and its current plans, estimates, and expectations and are not a representation that such plans, estimates or expectations will be achieved. Factors that could cause actual results to differ materially from those described herein include risks related to: (a) uncertainties in the financial services industry, including as a result of recent bank failures, and the potential impacts on Q2’s customers' prospects and Q2’s business sales cycles, Q2’s prospects' and customers' spending decisions, including professional services which are more discretionary in nature, and the timing of customer implementation and purchasing decisions; (b) the risk of increased or new competition in Q2’s existing markets and as Q2 enter new markets or new sections of existing markets, or as Q2 offer new solutions; (c) the risks associated with the development of Q2’s solutions and changes to the market for Q2’s solutions compared to Q2’s expectations; (d) quarterly fluctuations in Q2’s operating results relative to Q2’s expectations and guidance and the accuracy of Q2’s forecasts; (e) the risks associated with anticipated higher operating expenses for the remainder of 2023 and beyond; (f) the impact that rising interest rates, inflation, an economic slowdown, or challenges in the financial services industry, financial markets and credit markets have had to date or in the future could have on account holder or end user, or End User, usage of Q2’s solutions, including the promotion and adoption of Q2’s Helix and payment solutions, and on Q2’s customers' prospects and Q2’s business sales cycles, Q2’s prospects' and customers' spending decisions, including for professional services which are more discretionary in nature, and the timing of customer implementation and purchasing decisions; (g) the risks and increased costs associated with managing growth and the challenges associated with improving operations and hiring, retaining and motivating employees to support such growth, particularly in light of macroeconomic factors, including increased employee turnover, labor shortages, wage inflation and extreme competition for talent; (h) the risk that the residual impacts of the COVID-19 pandemic continue to or that any renewed efforts to limit its spread could 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; (i) the risks associated with Q2’s transactional business which are typically driven by end-user behavior which can be influenced by external drivers outside of Q2’s control; (j) the risks associated with effectively managing Q2’s cost structure in light of the challenging macroeconomic environment, challenges in the financial services industry and from the effects of seasonal or other unexpected trends; (k) the risks associated with the general economic and geopolitical uncertainties, including the heightened risk of state-sponsored cyberattacks on financial services and other critical infrastructure, and continued or increased inflation driven by unpredictable economic impacts that have and may continue to negatively affect demand for Q2's solutions; (l) the risks associated with managing Q2’s business in response to continued challenging macroeconomic conditions, challenges in the financial services industry and any anticipated or resulting recession; (m) the risks associated with accurately forecasting and managing the impacts of any macroeconomic downturn or challenges in the financial services industry on Q2’s customers and their end users, including in particular the impacts of any downturn on financial technology companies, or FinTechs, or alternative finance companies, or Alt-FIs, and Q2’s arrangements with them, which represent a newer market opportunity for us, a more complex revenue model for us and which may be more vulnerable to an economic downturn than Q2’s financial institution customers; (n) the challenges and costs associated with selling, implementing and supporting Q2’s solutions, particularly for larger customers with more complex requirements and longer implementation processes, including risks related to the timing and predictability of sales of Q2’s solutions and the impact that the timing of bookings may have on Q2’s revenue and financial performance in a period; (o) the risk that errors, interruptions or delays in Q2’s solutions or Web hosting negatively impacts Q2’s business and sales; (p) the risks associated with cyberattacks, data and privacy breaches and breaches of security measures within Q2’s products, systems and infrastructure or the products, systems and infrastructure of third parties upon which Q2 relies and the resultant costs and liabilities and harm to Q2’s business and reputation and Q2’s ability to sell Q2’s solutions; (q) the difficulties and risks associated with developing and selling complex new solutions and enhancements with the technical and regulatory specifications and functionality required by Q2’s customers and relevant governmental authorities; (r) regulatory risks, including risks related to evolving regulation of artificial intelligence, or AI, machine learning and the receipt, collection, storage, processing and transfer of data; (s) the risks associated with Q2’s sales and marketing capabilities, including partner relationships and the length, cost and unpredictability of Q2’s sales cycle; (t) the risks inherent in third-party technology and implementation partnerships that could cause harm to Q2’s business; (u) the risk that Q2 will not be able to maintain historical contract terms such as pricing and duration; (v) the general risks associated with the complexity of Q2’s customer arrangements and Q2’s solutions; (w) the risks associated with integrating acquired companies and successfully selling and maintaining their solutions; (x) litigation related to intellectual property and other matters and any related claims, negotiations and settlements; (y) the risks associated with further consolidation in the financial services industry; (z) the risks associated with selling Q2’s solutions internationally and with the recent expansion of Q2’s international operations; and (aa) the risk that Q2’s debt repayment obligations may adversely affect Q2’s financial condition and cash flows from operations in the future and that Q2 may not be able to obtain capital when desired or needed on favorable terms.

Additional information relating to the uncertainty affecting the Q2 business is contained in Q2's filings with the Securities and Exchange Commission. These documents are available on the SEC Filings section of the Investor Relations section of Q2's website at http://investors.Q2.com/. These forward-looking statements represent Q2's expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Q2 disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

 

Q2 Holdings, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

September 30, 2023

 

December 31, 2022

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

155,993

 

 

$

199,600

 

Restricted cash

 

 

2,069

 

 

 

2,302

 

Investments

 

 

134,789

 

 

 

233,753

 

Accounts receivable, net

 

 

44,451

 

 

 

46,735

 

Contract assets, current portion, net

 

 

10,845

 

 

 

8,909

 

Prepaid expenses and other current assets

 

 

14,633

 

 

 

10,832

 

Deferred solution and other costs, current portion

 

 

25,162

 

 

 

21,117

 

Deferred implementation costs, current portion

 

 

8,753

 

 

 

7,828

 

Total current assets

 

 

396,695

 

 

 

531,076

 

Property and equipment, net

 

 

44,813

 

 

 

56,695

 

Right of use assets

 

 

34,105

 

 

 

39,837

 

Deferred solution and other costs, net of current portion

 

 

27,093

 

 

 

26,410

 

Deferred implementation costs, net of current portion

 

 

21,062

 

 

 

18,713

 

Intangible assets, net

 

 

128,354

 

 

 

145,681

 

Goodwill

 

 

512,869

 

 

 

512,869

 

Contract assets, net of current portion and allowance

 

 

10,823

 

 

 

16,186

 

Other long-term assets

 

 

3,435

 

 

 

2,259

 

Total assets

 

$

1,179,249

 

 

$

1,349,726

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable and accrued liabilities

 

$

51,244

 

 

$

54,263

 

Convertible notes, current portion

 

 

 

 

 

10,903

 

Deferred revenues, current portion

 

 

115,777

 

 

 

117,468

 

Lease liabilities, current portion

 

 

9,071

 

 

 

9,408

 

Total current liabilities

 

 

176,092

 

 

 

192,042

 

Convertible notes, net of current portion

 

 

489,969

 

 

 

657,789

 

Deferred revenues, net of current portion

 

 

17,932

 

 

 

21,691

 

Lease liabilities, net of current portion

 

 

46,890

 

 

 

52,991

 

Other long-term liabilities

 

 

7,339

 

 

 

6,189

 

Total liabilities

 

 

738,222

 

 

 

930,702

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

Common stock

 

 

6

 

 

 

6

 

Additional paid-in capital

 

 

1,050,630

 

 

 

982,300

 

Accumulated other comprehensive loss

 

 

(1,994

)

 

 

(2,972

)

Accumulated deficit

 

 

(607,615

)

 

 

(560,310

)

Total stockholders' equity

 

 

441,027

 

 

 

419,024

 

Total liabilities and stockholders' equity

 

$

1,179,249

 

 

$

1,349,726

 

 
 

Q2 Holdings, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

Revenues (1)

 

$

154,967

 

 

$

144,751

 

 

$

462,506

 

 

$

419,131

 

Cost of revenues (2)

 

 

80,834

 

 

 

77,895

 

 

 

241,248

 

 

 

228,988

 

Gross profit

 

 

74,133

 

 

 

66,856

 

 

 

221,258

 

 

 

190,143

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Sales and marketing

 

 

26,123

 

 

 

27,966

 

 

 

82,968

 

 

 

79,709

 

Research and development

 

 

34,542

 

 

 

33,099

 

 

 

103,063

 

 

 

96,062

 

General and administrative

 

 

28,084

 

 

 

22,614

 

 

 

79,903

 

 

 

66,467

 

Transaction-related costs

 

 

3

 

 

 

352

 

 

 

24

 

 

 

882

 

Amortization of acquired intangibles

 

 

5,250

 

 

 

4,422

 

 

 

15,764

 

 

 

13,266

 

Lease and other restructuring charges

 

 

3,303

 

 

 

5,494

 

 

 

7,576

 

 

 

6,031

 

Total operating expenses

 

 

97,305

 

 

 

93,947

 

 

 

289,298

 

 

 

262,417

 

Loss from operations

 

 

(23,172

)

 

 

(27,091

)

 

 

(68,040

)

 

 

(72,274

)

Total other income (expense), net (3)

 

 

1,011

 

 

 

(231

)

 

 

22,238

 

 

 

(2,125

)

Loss before income taxes

 

 

(22,161

)

 

 

(27,322

)

 

 

(45,802

)

 

 

(74,399

)

Provision for income taxes

 

 

(1,006

)

 

 

(469

)

 

 

(1,503

)

 

 

(2,173

)

Net loss

 

$

(23,167

)

 

$

(27,791

)

 

$

(47,305

)

 

$

(76,572

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

Unrealized gain (loss) on available-for-sale investments

 

 

423

 

 

 

(746

)

 

 

1,285

 

 

 

(2,363

)

Foreign currency translation adjustment

 

 

(470

)

 

 

(291

)

 

 

(307

)

 

 

(1,105

)

Comprehensive loss

 

$

(23,214

)

 

$

(28,828

)

 

$

(46,327

)

 

$

(80,040

)

 

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

 

Net loss per common share, basic and diluted

 

$

(0.40

)

 

$

(0.48

)

 

$

(0.81

)

 

$

(1.34

)

Weighted average common shares outstanding, basic and diluted

 

 

58,492

 

 

 

57,362

 

 

 

58,223

 

 

 

57,205

 

(1)

Includes deferred revenue reduction from purchase accounting of $0.1 million for each of the three months ended September 30, 2023 and 2022, and $0.3 million and $0.5 million for the nine months ended September 30, 2023 and 2022, respectively.

(2)

Includes amortization of acquired technology of $5.9 million and $5.6 million for the three months ended September 30, 2023 and 2022, respectively, and $17.6 million and $16.8 million for the nine months ended September 30, 2023 and 2022, respectively.

(3)

Includes a gain of $19.9 million related to the early extinguishment of a portion of our 2026 Notes and 2025 Notes for the nine months ended September 30, 2023.

 

Q2 Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(47,305

)

 

$

(76,572

)

Adjustments to reconcile net loss to net cash from operating activities:

 

 

 

 

Amortization of deferred implementation, solution and other costs

 

 

19,184

 

 

 

17,227

 

Depreciation and amortization

 

 

53,764

 

 

 

45,237

 

Amortization of debt issuance costs

 

 

1,608

 

 

 

2,043

 

Amortization of premiums and discounts on investments

 

 

(2,791

)

 

 

311

 

Stock-based compensation expense

 

 

59,819

 

 

 

51,208

 

Deferred income taxes

 

 

(120

)

 

 

943

 

(Gain) loss on extinguishment of debt

 

 

(19,312

)

 

 

 

Other non-cash charges

 

 

4,186

 

 

 

6,178

 

Changes in operating assets and liabilities

 

 

(35,318

)

 

 

(53,882

)

Net cash provided by (used in) operating activities

 

 

33,715

 

 

 

(7,307

)

Cash flows from investing activities:

 

 

 

 

Net maturities (purchases) of investments

 

 

102,559

 

 

 

(100,928

)

Purchases of property and equipment

 

 

(4,568

)

 

 

(8,933

)

Capitalized software development costs

 

 

(19,322

)

 

 

(15,662

)

Net cash provided by (used in) investing activities

 

 

78,669

 

 

 

(125,523

)

Cash flows from financing activities:

 

 

 

 

Payment for maturity of 2023 convertible notes

 

 

(10,908

)

 

 

 

Payments for repurchases of convertible notes

 

 

(149,640

)

 

 

 

Proceeds from capped calls related to convertible notes

 

 

139

 

 

 

 

Proceeds from exercise of stock options and ESPP

 

 

4,322

 

 

 

3,254

 

Net cash provided by (used in) financing activities

 

 

(156,087

)

 

 

3,254

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

(137

)

 

 

(939

)

Net decrease in cash, cash equivalents and restricted cash

 

 

(43,840

)

 

 

(130,515

)

Cash, cash equivalents and restricted cash, beginning of period

 

 

201,902

 

 

 

325,821

 

Cash, cash equivalents and restricted cash, end of period

 

$

158,062

 

 

$

195,306

 

 
 

Q2 Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(in thousands)

(unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

GAAP revenue

 

$

154,967

 

 

$

144,751

 

 

$

462,506

 

 

$

419,131

 

Deferred revenue reduction from purchase accounting

 

 

76

 

 

 

104

 

 

 

275

 

 

 

515

 

Non-GAAP revenue

 

$

155,043

 

 

$

144,855

 

 

$

462,781

 

 

$

419,646

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

74,133

 

 

$

66,856

 

 

$

221,258

 

 

$

190,143

 

Stock-based compensation

 

 

3,373

 

 

 

2,898

 

 

 

10,323

 

 

 

8,972

 

Amortization of acquired technology

 

 

5,885

 

 

 

5,603

 

 

 

17,648

 

 

 

16,810

 

Transaction-related costs

 

 

 

 

 

 

 

 

 

 

 

 

Lease and other restructuring charges

 

 

132

 

 

 

 

 

 

561

 

 

 

 

Deferred revenue reduction from purchase accounting

 

 

76

 

 

 

104

 

 

 

275

 

 

 

515

 

Non-GAAP gross profit

 

$

83,599

 

 

$

75,461

 

 

$

250,065

 

 

$

216,440

 

 

 

 

 

 

 

 

 

 

Non-GAAP gross margin:

 

 

 

 

 

 

 

 

Non-GAAP gross profit

 

$

83,599

 

 

$

75,461

 

 

$

250,065

 

 

$

216,440

 

Non-GAAP revenue

 

 

155,043

 

 

 

144,855

 

 

 

462,781

 

 

 

419,646

 

Non-GAAP gross margin

 

 

53.9

%

 

 

52.1

%

 

 

54.0

%

 

 

51.6

%

 

 

 

 

 

 

 

 

 

GAAP sales and marketing expense

 

$

26,123

 

 

$

27,966

 

 

$

82,968

 

 

$

79,709

 

Stock-based compensation

 

 

(4,050

)

 

 

(4,286

)

 

 

(13,133

)

 

 

(11,624

)

Non-GAAP sales and marketing expense

 

$

22,073

 

 

$

23,680

 

 

$

69,835

 

 

$

68,085

 

 

 

 

 

 

 

 

 

 

GAAP research and development expense

 

$

34,542

 

 

$

33,099

 

 

$

103,063

 

 

$

96,062

 

Stock-based compensation

 

 

(3,908

)

 

 

(3,661

)

 

 

(11,691

)

 

 

(10,363

)

Non-GAAP research and development expense

 

$

30,634

 

 

$

29,438

 

 

$

91,372

 

 

$

85,699

 

 

 

 

 

 

 

 

 

 

GAAP general and administrative expense

 

$

28,084

 

 

$

22,614

 

 

$

79,903

 

 

$

66,467

 

Stock-based compensation

 

 

(9,778

)

 

 

(5,919

)

 

 

(24,672

)

 

 

(17,341

)

Non-GAAP general and administrative expense

 

$

18,306

 

 

$

16,695

 

 

$

55,231

 

 

$

49,126

 

 

 

 

 

 

 

 

 

 

GAAP operating loss

 

$

(23,172

)

 

$

(27,091

)

 

$

(68,040

)

 

$

(72,274

)

Deferred revenue reduction from purchase accounting

 

 

76

 

 

 

104

 

 

 

275

 

 

 

515

 

Stock-based compensation

 

 

21,109

 

 

 

16,764

 

 

 

59,819

 

 

 

48,300

 

Transaction-related costs

 

 

3

 

 

 

352

 

 

 

24

 

 

 

882

 

Amortization of acquired technology

 

 

5,885

 

 

 

5,603

 

 

 

17,648

 

 

 

16,810

 

Amortization of acquired intangibles

 

 

5,250

 

 

 

4,422

 

 

 

15,764

 

 

 

13,266

 

Lease and other restructuring charges

 

 

3,435

 

 

 

5,494

 

 

 

8,137

 

 

 

6,031

 

Non-GAAP operating income

 

$

12,586

 

 

$

5,648

 

 

$

33,627

 

 

$

13,530

 

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP net loss to adjusted EBITDA:

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(23,167

)

 

$

(27,791

)

 

$

(47,305

)

 

$

(76,572

)

Depreciation and amortization

 

 

18,286

 

 

 

15,291

 

 

 

53,764

 

 

 

45,237

 

Stock-based compensation

 

 

21,109

 

 

 

16,764

 

 

 

59,819

 

 

 

48,300

 

Provision for income taxes

 

 

1,006

 

 

 

469

 

 

 

1,503

 

 

 

2,173

 

Interest and other (income) expense, net

 

 

(1,091

)

 

 

137

 

 

 

(2,593

)

 

 

1,975

 

Transaction-related costs

 

 

3

 

 

 

352

 

 

 

24

 

 

 

882

 

Lease and other restructuring charges

 

 

3,435

 

 

 

5,494

 

 

 

8,137

 

 

 

6,031

 

(Gain) loss on extinguishment of debt

 

 

 

 

 

 

 

 

(19,869

)

 

 

 

Deferred revenue reduction from purchase accounting

 

 

76

 

 

 

104

 

 

 

275

 

 

 

515

 

Adjusted EBITDA

 

$

19,657

 

 

$

10,820

 

 

$

53,755

 

 

$

28,541

 

 
 

Q2 Holdings, Inc.

Reconciliation of Free Cash Flow

(in thousands)

(unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

 

2022

 

 

 

 

Net cash provided by (used in) operating activities

 

$

33,715

 

 

$

(7,307

)

Purchases of property and equipment

 

 

(4,568

)

 

 

(8,933

)

Capitalized software development costs

 

 

(19,322

)

 

 

(15,662

)

Free cash flow

 

$

9,825

 

 

$

(31,902

)

 
 

Q2 Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Revenue Outlook

(in thousands)

(unaudited)

 

 

 

Q4 2023 Outlook

 

Full Year 2023 Outlook

 

 

Low

 

High

 

Low

 

High

 

 

 

 

 

 

 

 

 

GAAP revenue

 

$

160,230

 

$

163,230

 

$

622,155

 

$

625,155

Deferred revenue reduction from purchase accounting

 

 

70

 

 

70

 

 

345

 

 

345

Non-GAAP revenue

 

$

160,300

 

$

163,300

 

$

622,500

 

$

625,500

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 WalnutCreekGuide.com & California Media Partners, LLC. All rights reserved.