NYSE$QTWO

Q2 Holdings Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Q2 Holdings announced strong first quarter results, exceeding revenue and adjusted EBITDA guidance, driven by new customer go-lives and organic user growth.

Q2 Holdings, Inc. reported a strong start to 2021 with revenue of $116.5 million, up 26% year-over-year. The company's adjusted EBITDA was $9.9 million, a significant increase from the prior-year quarter. They are raising their full year revenue guidance and revising their adjusted EBITDA guidance to reflect their current views on their business outlook for the remainder of 2021 and the impact of the ClickSWITCH acquisition.

  • Revenue for the first quarter was $116.5 million, up 26 percent year-over-year.
  • GAAP gross margin for the first quarter was 45.7 percent, up from 42.5 percent for the prior-year quarter.
  • Adjusted EBITDA for the first quarter was $9.9 million, up from negative $0.1 million for the prior-year quarter.
  • Exited the first quarter with over 18.3 million registered users on the Q2 Platform, representing 19 percent year-over-year growth.

Headline financials

Total Revenue

$117M

Previous: $92.4M+26.1%
EPS (adj)

$0.10

Previous: -$0.09+211.1%
GAAP Gross Margin

45.7%

Previous: 42.5%+7.5%
Adjusted EBITDA

$9.9M

Previous: -$100K+10000.0%
Capital Expenditures

-$6.11M

Previous: -$4.64M-31.6%
Free Cash Flow

-$31.8M

Previous: -$38.8M+18.0%
Net Income

-$25.7M

Previous: -$34.1M+24.8%
Operating Income

-$17.5M

Previous: -$27.2M+35.6%
Gross Profit

$53.2M

Previous: $39.3M+35.5%
Cash & Equivalents

$371M

Previous: $83.1M+346.2%
Total Assets

$1.42B

Previous: $1B+41.7%
Stock-Based Comp

$13.5M

No prior period

Revenue & EPS history

Q2 · Revenue · Quarterly

$117M

Q1 2021+26.1%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Q2 Holdings is providing guidance for its second quarter of 2021 and revised guidance for its full-year 2021.

Tailwinds

  • Total non-GAAP revenue of $122.0 million to $123.5 million for Q2 2021, which would represent year-over-year growth of 23 percent to 25 percent.
  • Adjusted EBITDA of $8.5 million to $9.1 million for Q2 2021.
  • Total non-GAAP revenue of $495.0 million to $498.0 million for full year 2021, which would represent year-over-year growth of 22 percent.
  • Adjusted EBITDA of $32.0 million to $34.0 million for full year 2021, representing 6 percent to 7 percent of non-GAAP revenue for the year.
  • Expect estimated revenue contribution from ClickSWITCH of low-to-mid- single-digit millions for full year 2021.

Headwinds

  • Adjusted EBITDA loss of low-to-mid- single-digit millions from ClickSWITCH for full year 2021.
  • The company is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.
  • Excluded items could be material to our results computed in accordance with GAAP in future periods.
  • The forward-looking statements 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.
  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+3.7%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+2.2%

Avg return

30 days after

65%

31 / 48 earnings

Positive

+18.5%

Q3 2024

Best reaction

-8.2%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.8%-0.3%-9.9%
Q4 2025-7.4%-7.1%-14.7%
Q3 2025+15.3%+20.1%+20.3%
Q1 2025+13.1%+15.5%+13.6%
Q4 2024+0.9%+1.8%-17.6%
Q3 2024+18.5%+18.4%+28.6%
Q2 2024+5.5%-1.9%+11.7%
Q1 2024+15.9%+19.7%+18.3%
Q4 2023+9.1%+10.6%+21.9%
Q3 2023+9.9%+11.9%+24.9%
Q2 2023-6.2%-4.5%-1.7%
Q1 2023+12.1%+9.6%+24.9%
Q4 2022-2.3%-5.6%-31.6%
Q3 2022-8.2%+7.7%-4.2%
Q2 2022+0.1%-2.3%-15.8%
Q1 2022-4.7%-12.3%-0.3%
Q4 2021+4.6%-1.3%-3.8%
Q3 2021+14.3%+13.2%-5.6%
Q2 2021-6.1%-11.2%-7.9%
Q1 2021-3.5%-6.2%-3.2%
Q4 2020-6.5%-7.7%-27.1%
Q3 2020+7.6%+10.8%+24.5%
Q2 2020+5.3%-4.5%-4.8%
Q1 2020+5.9%+2.1%+5.5%
Q4 2019+2.1%-4.6%-36.6%
Q3 2019-0.8%+7.1%+17.6%
Q2 2019+15.2%+15.5%+17.2%
Q1 2019-6.3%-2.0%-4.9%
Q4 2018+4.0%+3.9%+6.2%
Q3 2018+3.7%+1.6%-1.0%
Q2 2018-3.2%-1.9%+2.8%
Q1 2018+10.2%+9.2%+14.1%
Q4 2017+3.8%+5.8%+8.8%
Q3 2017-3.8%-1.3%-2.7%
Q2 2017-2.5%-2.7%+4.7%
Q1 2017-1.0%-1.3%+3.5%
Q4 2016+12.1%+13.2%+13.2%
Q3 2016-3.7%+5.5%+2.0%
Q2 2016-5.1%-14.2%-5.5%
Q1 2016+6.7%
Q4 2015+13.3%
Q3 2015+10.6%
Q2 2015+1.7%
Q1 2015+13.8%
Q4 2014+7.4%
Q3 2014-7.1%
Q2 2014+9.1%
Q1 2014+2.4%
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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