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AUSTIN, Texas--(BUSINESS WIRE)--Nov 7, 2022--
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, 2022.
GAAP Results for the Third Quarter 2022
Non-GAAP Results for the Third Quarter 2022
For a reconciliation of our GAAP to non-GAAP results, please see the tables below.
“The third quarter represented our strongest bookings performance of the year,” said Q2 CEO Matt Flake. “Our sales success came from a mix of key wins across digital banking, lending and Helix, with one Enterprise and five Tier 1 deals in total. I am encouraged by the quarter; and believe that our sales results indicate that the demand environment remains positive. Given the economic backdrop, we will manage the business with an increased focus on profitability, and we believe our continued sales execution will drive acceleration in our subscription revenue growth for the remainder of this year and in 2023.”
Third Quarter Highlights
Continued Sales Success, Leading the Industry in Delivering “The Digital Bank”
Facilitating the Convergence of Financial Services
“We delivered strong adjusted EBITDA results driven by an acceleration in higher margin subscription revenue growth and proactive cost management,” said David Mehok, Q2 CFO. “Our total revenue results for the quarter came in below our guidance predominately due to lower-than-expected discretionary services and transactional revenue which we believe were partially impacted by macroeconomic conditions. Our revised full-year outlook reflects our expectation to see continued pressure on our lower margin revenue streams and our focus on driving profitable growth.”
Financial Outlook
As of November 7, 2022, Q2 Holdings is providing guidance for its fourth quarter of 2022 and updated guidance for its full-year 2022, 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, acquisition related costs, interest and other (income) expense, income taxes, lease and other restructuring charges, 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 foregoing 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 2022 as follows:
Q2 Holdings is providing updated guidance for the full-year 2022 as follows:
Conference Call Details
Date: |
| Monday, November 7, 2022 |
Time: |
| 5:00 p.m. ET |
Hosts: |
| Matt Flake, CEO / David Mehok, CFO / Jonathan Price, EVP Emerging Businesses, Corporate & Business Development |
Conference Call Registration: |
| |
Webcast Registration: |
|
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.
About Q2 Holdings, Inc.
Q2 is a financial experience company dedicated to providing digital banking and lending solutions to banks, credit unions, alternative finance, and fintech companies in the U.S. and internationally. With comprehensive end-to-end solution sets, Q2 enables its partners to provide cohesive, secure, data-driven experiences to every account holder – from consumer to small business and corporate. 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.
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); non-GAAP net income; non-GAAP net income per share; and non-GAAP diluted weighted-average number of common shares outstanding. 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, acquisition related costs, lease and other restructuring charges, 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, acquisition related costs, 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), non-GAAP net income (loss), and non-GAAP net income (loss) per share, Q2 adjusts operating loss and net loss, respectively, for stock-based compensation, acquisition related costs, amortization of acquired technology, amortization of acquired intangibles, lease and other restructuring charges, loss on extinguishment of debt and the impact to deferred revenue from purchase accounting, and with respect to non-GAAP net income, amortization of debt discount and issuance costs and loss on extinguishment of debt. In the case of non-GAAP diluted weighted-average number of common shares outstanding, Q2 adjusts diluted weighted-average number of common shares outstanding by the weighted-average effect of potentially dilutive shares which include (i) employee equity incentive plans, excluding the impact of unrecognized stock-based compensation expense and (ii) convertible senior notes outstanding and related warrants including the anti-dilutive impact of note hedge and capped call agreements on convertible senior notes outstanding.
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: Q2’s sales execution and the demand environment for its solutions; declines in discretionary spending from some customers; increased focus on profitability; continued sales execution and acceleration in our subscription revenue growth going forward; the current uncertain and challenging economic conditions and the impact such conditions may have on our revenue streams and our focus on driving profitable growth; 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) the risk of increased or new competition in our existing markets and as we enter new markets or new sections of existing markets, or as we offer new solutions; (b) risks associated with the development of and changes to the market for our solutions compared to our expectations; (c) quarterly fluctuations in our operating results relative to our expectations and guidance and the accuracy of our forecasts; (d) the risks associated with anticipated higher operating expenses in 2022 and beyond; (e) the impact that inflation, rising interest rates or a slowdown in the economy, financial markets and credit markets have and may continue to have on account holder or end user usage of our solutions and on our customers’, prospects and our business sales cycles, our prospects’ and customers’ purchasing, spending decisions, including for some of our non-implementation services, which are more discretionary in nature, and the timing of customer implementation and purchasing decisions; (f) 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 the macroeconomic impacts of the novel coronavirus disease, or COVID-19, including increased employee turnover, labor shortages, wage inflation and extreme competition for talent; (g) the risk that the COVID-19 pandemic and the associated efforts to limit its spread continue to negatively impact or disrupt the markets for our solutions and that the markets for our solutions do not return to normal or grow as anticipated; (h) 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 our control; (i) risks associated with effectively managing costs in light of the challenging macroeconomic environment, including the impacts of wage inflation on our operating costs; (j) risks associated with the general economic and geopolitical impacts of Russia’s invasion of Ukraine, including the heightened risk of cyberattacks on financial services and other critical infrastructure, and continued or increased inflation partially driven by increased energy costs or other unpredictable economic impacts that have and may continue to negatively affect demand for our solutions; (k) risks associated with managing Q2’s business in response to continued challenging macroeconomic conditions and any anticipated or resulting recession; (l) risks associated with accurately forecasting and managing the impacts of any macroeconomic downturn on Q2 customers and their end users, including in particular the impacts of any downturn on FinTechs and Q2’s arrangements with them, which represent a newer market opportunity for Q2, a more complex revenue model for Q2 and which may be more vulnerable to an economic downturn than Q2’s financial institution customers; (m) the challenges and costs associated with selling, implementing and supporting our solutions, particularly for larger customers with more complex requirements and longer implementation processes, including risks related to the timing and predictability of sales of our solutions and the impact that the timing of bookings may have on our revenue and financial performance in a period; (n) the risk that errors, interruptions or delays in our solutions or Web hosting negatively impacts our business and sales; (o) risks associated with cyberattacks, data and privacy breaches and breaches of security measures within our products, systems and infrastructure or the products, systems and infrastructure of third parties upon which we rely and the resultant costs and liabilities and harm to our business and reputation and our ability to sell our solutions; (p) regulatory risks, including risks related to evolving regulation of artificial intelligence, machine learning and the receipt, collection, storage, processing and transfer of data; (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 our customers and relevant governmental authorities; (r) risks associated with our sales and marketing capabilities, including partner relationships and the length, cost and unpredictability of our sales cycle; (s) the risks inherent in third-party technology and implementation partnerships that could cause harm to our business; (t) the risk that we will not be able to maintain historical contract terms such as pricing and duration; (u) the general risks associated with the complexity of our customer arrangements and our solutions; (v) the risks associated with integrating acquired companies and successfully selling and maintaining their solutions; (w) litigation related to intellectual property and other matters and any related claims, negotiations and settlements; (x) the risks associated with further consolidation in the financial services industry; (y) risks associated with selling our solutions internationally and with our international operations; and (z) the risk that our debt repayment obligations may adversely affect our financial condition and cash flows from operations in the future and that we 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, |
| December 31, | |||||
2022 |
| 2021 | |||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 192,574 |
| $ | 322,848 |
| |
| Restricted cash |
| 2,732 |
|
| 2,973 |
| |
| Investments |
| 203,116 |
|
| 104,878 |
| |
| Accounts receivable, net |
| 52,598 |
|
| 46,979 |
| |
| Contract assets, current portion, net |
| 3,298 |
|
| 1,845 |
| |
| Prepaid expenses and other current assets |
| 13,503 |
|
| 10,531 |
| |
| Deferred solution and other costs, current portion |
| 23,827 |
|
| 25,076 |
| |
| Deferred implementation costs, current portion |
| 7,646 |
|
| 7,320 |
| |
| Total current assets |
| 499,294 |
|
| 522,450 |
| |
| Property and equipment, net |
| 59,130 |
|
| 66,608 |
| |
| Right of use assets |
| 43,451 |
|
| 52,278 |
| |
| Deferred solution and other costs, net of current portion |
| 26,571 |
|
| 26,930 |
| |
| Deferred implementation costs, net of current portion |
| 18,686 |
|
| 17,039 |
| |
| Intangible assets, net |
| 146,197 |
|
| 162,461 |
| |
| Goodwill |
| 512,869 |
|
| 512,869 |
| |
| Contract assets, net of current portion and allowance |
| 25,272 |
|
| 22,103 |
| |
| Other long-term assets |
| 1,928 |
|
| 2,307 |
| |
| Total assets | $ | 1,333,398 |
| $ | 1,385,045 |
| |
| Liabilities and stockholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued liabilities | $ | 44,841 |
| $ | 60,665 |
| |
| Convertible notes, current portion |
| 10,887 |
|
| - |
| |
| Deferred revenues, current portion |
| 101,057 |
|
| 98,692 |
| |
| Lease liabilities, current portion |
| 9,443 |
|
| 9,001 |
| |
| Total current liabilities |
| 166,228 |
|
| 168,358 |
| |
| Convertible notes, net of current portion |
| 657,129 |
|
| 551,598 |
| |
| Deferred revenues, net of current portion |
| 20,831 |
|
| 29,168 |
| |
| Lease liabilities, net of current portion |
| 55,292 |
|
| 61,374 |
| |
| Other long-term liabilities |
| 3,573 |
|
| 4,251 |
| |
| Total liabilities |
| 903,053 |
|
| 814,749 |
| |
| Stockholders' equity: | |||||||
| Common stock |
| 6 |
|
| 6 |
| |
| Additional paid-in capital |
| 961,841 |
|
| 1,064,358 |
| |
| Accumulated other comprehensive loss |
| (3,603 | ) |
| (135 | ) | |
| Accumulated deficit |
| (527,899 | ) |
| (493,933 | ) | |
| Total stockholders' equity |
| 430,345 |
|
| 570,296 |
| |
| Total liabilities and stockholders' equity | $ | 1,333,398 |
| $ | 1,385,045 |
| |
| 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, | ||||||||||||||
2022 |
| 2021 |
| 2022 |
| 2021 | ||||||||||
| Revenues (1) | $ | 144,751 |
| $ | 126,736 |
| $ | 419,131 |
| $ | 366,829 |
| ||||
| Cost of revenues (2) |
| 77,895 |
|
| 69,726 |
|
| 228,988 |
|
| 201,278 |
| ||||
| Gross profit |
| 66,856 |
|
| 57,010 |
|
| 190,143 |
|
| 165,551 |
| ||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing |
| 27,966 |
|
| 22,664 |
|
| 79,709 |
|
| 63,067 |
| ||||
| Research and development |
| 33,099 |
|
| 30,763 |
|
| 96,062 |
|
| 86,987 |
| ||||
| General and administrative |
| 22,614 |
|
| 20,352 |
|
| 66,467 |
|
| 57,890 |
| ||||
| Acquisition related costs |
| 352 |
|
| 476 |
|
| 882 |
|
| 2,514 |
| ||||
| Amortization of acquired intangibles |
| 4,422 |
|
| 4,483 |
|
| 13,266 |
|
| 13,465 |
| ||||
| Lease and other restructuring charges (3) |
| 5,494 |
|
| 1,244 |
|
| 6,031 |
|
| 2,056 |
| ||||
| Total operating expenses |
| 93,947 |
|
| 79,982 |
|
| 262,417 |
|
| 225,979 |
| ||||
| Loss from operations |
| (27,091 | ) |
| (22,972 | ) |
| (72,274 | ) |
| (60,428 | ) | ||||
| Total other income (expense), net |
| (231 | ) |
| (8,015 | ) |
| (2,125 | ) |
| (26,028 | ) | ||||
| Loss before income taxes |
| (27,322 | ) |
| (30,987 | ) |
| (74,399 | ) |
| (86,456 | ) | ||||
| Provision for income taxes |
| (469 | ) |
| (596 | ) |
| (2,173 | ) |
| (909 | ) | ||||
| Net loss | $ | (27,791 | ) | $ | (31,583 | ) | $ | (76,572 | ) | $ | (87,365 | ) | ||||
| Other comprehensive gain (loss): | ||||||||||||||||
| Unrealized loss on available-for-sale investments |
| (746 | ) |
| (8 | ) |
| (2,363 | ) |
| (3 | ) | ||||
| Foreign currency translation adjustment |
| (291 | ) |
| 163 |
|
| (1,105 | ) |
| 128 |
| ||||
| Comprehensive loss | $ | (28,828 | ) | $ | (31,428 | ) | $ | (80,040 | ) | $ | (87,240 | ) | ||||
| Net loss per common share: | ||||||||||||||||
| Net loss per common share, basic and diluted | $ | (0.48 | ) | $ | (0.56 | ) | $ | (1.34 | ) | $ | (1.55 | ) | ||||
| Weighted average common shares outstanding, basic and diluted |
| 57,362 |
|
| 56,559 |
|
| 57,205 |
|
| 56,242 |
|
(1) |
| Includes deferred revenue reduction from purchase accounting of $0.1 million and $0.6 million for the three months ended September 30, 2022 and 2021, respectively, and $0.5 million and $1.7 million for the nine months ended September 30, 2022 and 2021, respectively. |
|
|
|
(2) |
| Includes amortization of acquired technology of $5.6 million for each of the three months ended September 30, 2022 and 2021, and $16.8 million and $16.4 million for the nine months ended September 30, 2022 and 2021, respectively. |
|
|
|
(3) |
| Lease and other restructuring charges include costs related to the early vacating of various facilities and any related impairment of the right of use assets, partially offset by anticipated sublease income from these facilities and severance and other related compensation charges. |
| Q2 Holdings, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
Nine Months Ended September 30, | ||||||||
2022 |
| 2021 | ||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (76,572 | ) | $ | (87,365 | ) | ||
| Adjustments to reconcile net loss to net cash from operating activities: | ||||||||
| Amortization of deferred implementation, solution and other costs |
| 17,227 |
|
| 17,394 |
| ||
| Depreciation and amortization |
| 45,237 |
|
| 40,580 |
| ||
| Amortization of debt issuance costs |
| 2,043 |
|
| 1,550 |
| ||
| Amortization of debt discount |
| - |
|
| 19,398 |
| ||
| Amortization of premiums on investments |
| 311 |
|
| 751 |
| ||
| Stock-based compensation expense |
| 51,208 |
|
| 41,796 |
| ||
| Deferred income taxes |
| 943 |
|
| 52 |
| ||
| Loss on extinguishment of debt |
| - |
|
| 1,513 |
| ||
| Other non-cash charges |
| 6,178 |
|
| 2,517 |
| ||
| Changes in operating assets and liabilities |
| (54,821 | ) |
| (46,572 | ) | ||
| Net cash used in operating activities |
| (8,246 | ) |
| (8,386 | ) | ||
| Cash flows from investing activities: | ||||||||
| Net maturities (purchases) of investments |
| (100,928 | ) |
| 30,793 |
| ||
| Purchases of property and equipment |
| (8,933 | ) |
| (16,059 | ) | ||
| Business combinations, net of cash acquired |
| - |
|
| (64,652 | ) | ||
| Capitalized software development costs |
| (15,662 | ) |
| (3,908 | ) | ||
| Net cash used in investing activities |
| (125,523 | ) |
| (53,826 | ) | ||
| Cash flows from financing activities: | ||||||||
| Payments for repurchases of convertible notes |
| - |
|
| (63,692 | ) | ||
| Proceeds from bond hedges related to convertible notes |
| - |
|
| 26,295 |
| ||
| Payments for warrants related to convertible notes |
| - |
|
| (19,655 | ) | ||
| Proceeds from exercise of stock options and ESPP |
| 3,254 |
|
| 5,822 |
| ||
| Net cash provided by (used in) financing activities |
| 3,254 |
|
| (51,230 | ) | ||
| Net decrease in cash, cash equivalents, and restricted cash |
| (130,515 | ) |
| (113,442 | ) | ||
| Cash, cash equivalents, and restricted cash, beginning of period |
| 325,821 |
|
| 411,185 |
| ||
| Cash, cash equivalents, and restricted cash, end of period | $ | 195,306 |
| $ | 297,743 |
|
| Q2 Holdings, Inc. | |||||||||||||||
| Reconciliation of GAAP to Non-GAAP Measures | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| (unaudited) | |||||||||||||||
Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||||||||||
2022 |
| 2021 |
| 2022 |
| 2021 | |||||||||
| GAAP revenue | $ | 144,751 |
| $ | 126,736 |
| $ | 419,131 |
| $ | 366,829 | ||||
Deferred revenue reduction from purchase accounting |
| 104 |
|
| 554 |
|
| 515 |
|
| 1,677 |
| |||
| Non-GAAP revenue | $ | 144,855 |
| $ | 127,290 |
| $ | 419,646 |
| $ | 368,506 |
| |||
| GAAP gross profit | $ | 66,856 |
| $ | 57,010 |
| $ | 190,143 |
| $ | 165,551 |
| |||
| Stock-based compensation |
| 2,898 |
|
| 2,728 |
|
| 8,972 |
|
| 8,026 |
| |||
| Amortization of acquired technology |
| 5,603 |
|
| 5,604 |
|
| 16,810 |
|
| 16,365 |
| |||
| Acquisition related costs |
| - |
|
| 105 |
|
| - |
|
| 327 |
| |||
| Deferred revenue reduction from purchase accounting |
| 104 |
|
| 554 |
|
| 515 |
|
| 1,677 |
| |||
| Non-GAAP gross profit | $ | 75,461 |
| $ | 66,001 |
| $ | 216,440 |
| $ | 191,946 |
| |||
| Non-GAAP gross margin: | |||||||||||||||
| Non-GAAP gross profit | $ | 75,461 |
| $ | 66,001 |
| $ | 216,440 |
| $ | 191,946 |
| |||
| Non-GAAP revenue |
| 144,855 |
|
| 127,290 |
|
| 419,646 |
|
| 368,506 |
| |||
| Non-GAAP gross margin |
| 52.1 | % |
| 51.9 | % |
| 51.6 | % |
| 52.1 | % | |||
| GAAP sales and marketing expense | $ | 27,966 |
| $ | 22,664 |
| $ | 79,709 |
| $ | 63,067 |
| |||
| Stock-based compensation |
| (4,286 | ) |
| (2,885 | ) |
| (11,624 | ) |
| (8,352 | ) | |||
| Non-GAAP sales and marketing expense | $ | 23,680 |
| $ | 19,779 |
| $ | 68,085 |
| $ | 54,715 |
| |||
| GAAP research and development expense | $ | 33,099 |
| $ | 30,763 |
| $ | 96,062 |
| $ | 86,987 |
| |||
| Stock-based compensation |
| (3,661 | ) |
| (3,388 | ) |
| (10,363 | ) |
| (10,039 | ) | |||
| Non-GAAP research and development expense | $ | 29,438 |
| $ | 27,375 |
| $ | 85,699 |
| $ | 76,948 |
| |||
| GAAP general and administrative expense | $ | 22,614 |
| $ | 20,352 |
| $ | 66,467 |
| $ | 57,890 |
| |||
| Stock-based compensation |
| (5,919 | ) |
| (5,068 | ) |
| (17,341 | ) |
| (14,374 | ) | |||
| Non-GAAP general and administrative expense | $ | 16,695 |
| $ | 15,284 |
| $ | 49,126 |
| $ | 43,516 |
| |||
| GAAP operating loss | $ | (27,091 | ) | $ | (22,972 | ) | $ | (72,274 | ) | $ | (60,428 | ) | |||
| Deferred revenue reduction from purchase accounting |
| 104 |
|
| 554 |
|
| 515 |
|
| 1,677 |
| |||
| Stock-based compensation |
| 16,764 |
|
| 14,069 |
|
| 48,300 |
|
| 40,791 |
| |||
| Acquisition related costs |
| 352 |
|
| 581 |
|
| 882 |
|
| 2,841 |
| |||
| Amortization of acquired technology |
| 5,603 |
|
| 5,604 |
|
| 16,810 |
|
| 16,365 |
| |||
| Amortization of acquired intangibles |
| 4,422 |
|
| 4,483 |
|
| 13,266 |
|
| 13,465 |
| |||
| Lease and other restructuring charges |
| 5,494 |
|
| 1,244 |
|
| 6,031 |
|
| 2,056 |
| |||
| Non-GAAP operating income | $ | 5,648 |
| $ | 3,563 |
| $ | 13,530 |
| $ | 16,767 |
| |||
| GAAP net loss | $ | (27,791 | ) | $ | (31,583 | ) | $ | (76,572 | ) | $ | (87,365 | ) | |||
| Deferred revenue reduction from purchase accounting |
| 104 |
|
| 554 |
|
| 515 |
|
| 1,677 |
| |||
| Loss on extinguishment of debt |
| - |
|
| - |
|
| - |
|
| 1,513 |
| |||
| Stock-based compensation |
| 16,764 |
|
| 14,069 |
|
| 48,300 |
|
| 40,791 |
| |||
| Acquisition related costs |
| 352 |
|
| 581 |
|
| 882 |
|
| 2,841 |
| |||
| Amortization of acquired technology |
| 5,603 |
|
| 5,604 |
|
| 16,810 |
|
| 16,365 |
| |||
| Amortization of acquired intangibles |
| 4,422 |
|
| 4,483 |
|
| 13,266 |
|
| 13,465 |
| |||
| Lease and other restructuring charges |
| 5,494 |
|
| 1,244 |
|
| 6,031 |
|
| 2,056 |
| |||
| Amortization of debt discount and issuance costs |
| 676 |
|
| 6,849 |
|
| 2,043 |
|
| 20,948 |
| |||
| Non-GAAP net income | $ | 5,624 |
| $ | 1,801 |
| $ | 11,275 |
| $ | 12,291 |
| |||
| Reconciliation from diluted weighted-average number of common shares as reported to Non-GAAP diluted weighted-average number of common shares | |||||||||||||||
| Diluted weighted-average number of common shares, as reported |
| 57,362 |
|
| 56,559 |
|
| 57,205 |
|
| 56,242 |
| |||
| Non-GAAP weighted-average effect of potentially dilutive shares |
| 238 |
|
| 802 |
|
| 335 |
|
| 1,148 |
| |||
| Non-GAAP diluted weighted-average number of common shares |
| 57,600 |
|
| 57,361 |
|
| 57,540 |
|
| 57,390 |
| |||
| Calculation of non-GAAP income per share: | |||||||||||||||
| Non-GAAP net income | $ | 5,624 |
| $ | 1,801 |
| $ | 11,275 |
| $ | 12,291 |
| |||
| Non-GAAP diluted weighted-average number of common shares |
| 57,600 |
|
| 57,361 |
|
| 57,540 |
|
| 57,390 |
| |||
| Non-GAAP net income per share | $ | 0.10 |
| $ | 0.03 |
| $ | 0.20 |
| $ | 0.21 |
| |||
| Reconciliation of GAAP net loss to adjusted EBITDA: | |||||||||||||||
| GAAP net loss | $ | (27,791 | ) | $ | (31,583 | ) | $ | (76,572 | ) | $ | (87,365 | ) | |||
| Depreciation and amortization |
| 15,291 |
|
| 14,082 |
|
| 45,237 |
|
| 40,580 |
| |||
| Stock-based compensation |
| 16,764 |
|
| 14,069 |
|
| 48,300 |
|
| 40,791 |
| |||
| Provision for income taxes |
| 469 |
|
| 596 |
|
| 2,173 |
|
| 909 |
| |||
| Interest and other (income) expense, net |
| 137 |
|
| 7,761 |
|
| 1,975 |
|
| 24,056 |
| |||
| Acquisition related costs |
| 352 |
|
| 581 |
|
| 882 |
|
| 2,841 |
| |||
| Lease and other restructuring charges |
| 5,494 |
|
| 1,244 |
|
| 6,031 |
|
| 2,056 |
| |||
| Loss on extinguishment of debt |
| - |
|
| - |
|
| - |
|
| 1,513 |
| |||
| Deferred revenue reduction from purchase accounting |
| 104 |
|
| 554 |
|
| 515 |
|
| 1,677 |
| |||
| Adjusted EBITDA | $ | 10,820 |
| $ | 7,304 |
| $ | 28,541 |
| $ | 27,058 |
| |||
| Q2 Holdings, Inc. | |||||||||||
| Reconciliation of GAAP to Non-GAAP Revenue Outlook | |||||||||||
| (in thousands) | |||||||||||
Q4 2022 Outlook |
| Full Year 2022 Outlook | |||||||||
Low |
| High |
| Low |
| High | |||||
| GAAP revenue | $ | 148,271 | $ | 150,271 | $ | 567,356 | $ | 569,356 | |||
Deferred revenue reduction from purchase accounting |
| 129 |
| 129 |
| 644 |
| 644 | |||
| Non-GAAP revenue | $ | 148,400 | $ | 150,400 | $ | 568,000 | $ | 570,000 | |||
View source version on businesswire.com:https://www.businesswire.com/news/home/20221107005832/en/
CONTACT: MEDIA CONTACT:
Jean Kondo
Q2 Holdings, Inc.
M: +1-510-823-4728
jean.kondo@Q2.comINVESTOR CONTACT:
Josh Yankovich
Q2 Holdings, Inc.
O: +1-512-682-4463
josh.yankovich@Q2.com
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: SOFTWARE BANKING MOBILE/WIRELESS NETWORKS INTERNET PROFESSIONAL SERVICES FINTECH TECHNOLOGY DIGITAL CASH MANAGEMENT/DIGITAL ASSETS SECURITY INSURANCE FINANCE
SOURCE: Q2 Holdings, Inc.
Copyright Business Wire 2022.
PUB: 11/07/2022 04:15 PM/DISC: 11/07/2022 04:17 PM
http://www.businesswire.com/news/home/20221107005832/en