NYSE$QTWO

Q2 Holdings Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Q2 Holdings announced first quarter 2022 financial results.

Q2 Holdings' first quarter results showed a 15% year-over-year increase in revenue to $134.1 million. The company signed several new deals in digital lending and banking, and saw strong performance from its Emerging Businesses. They are raising their full-year guidance, which reflects confidence in a reacceleration of revenue growth and margin expansion exiting 2022 and into 2023.

  • Revenue for the first quarter was $134.1 million, up 15 percent year-over-year.
  • GAAP gross margin for the first quarter was 45.1 percent.
  • GAAP net loss for the first quarter was $23.6 million.
  • Adjusted EBITDA for the first quarter was $8.1 million.

Headline financials

Total Revenue

$134M

Previous: $117M+15.1%
EPS (adj)

$0.03

Previous: $0.10-70.0%
GAAP Gross Margin

45.1%

Previous: 45.7%-1.3%
Adjusted EBITDA

$8.06M

Previous: $9.9M-18.6%
Capital Expenditures

-$3.87M

Previous: -$6.11M+36.7%
Free Cash Flow

-$27.4M

Previous: -$31.8M+13.7%
Net Income

-$23.6M

Previous: -$25.7M+8.2%
Operating Income

-$21.4M

Previous: -$17.5M-22.2%
Gross Profit

$60.4M

Previous: $53.2M+13.5%
Cash & Equivalents

$226M

Previous: $371M-39.2%
Total Assets

$1.36B

Previous: $1.42B-4.0%
Stock-Based Comp

$14.9M

Previous: $13.5M+10.3%

Revenue & EPS history

Q2 · Revenue · Quarterly

$134M

Q1 2022+15.1%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Q2 Holdings is providing guidance for its second quarter of 2022 and full year 2022.

Tailwinds

  • Total non-GAAP revenue of $139.5 million to $141.0 million for Q2 2022.
  • This revenue would represent year-over-year growth of 12 to 14 percent.
  • Adjusted EBITDA of $7.4 million to $8.9 million, representing 5 to 6 percent of non-GAAP revenue for the quarter.
  • Total non-GAAP revenue of $577.5 million to $581.5 million for full year 2022.
  • This revenue would represent year-over-year growth of 15 percent to 16 percent.

Headwinds

  • Adjusted EBITDA of $41.4 million to $44.4 million for the full year, representing 7 to 8 percent of non-GAAP revenue for the year.
  • The ultimate outcome of exclusions of items such as depreciation and amortization, stock-based compensation, acquisition-related costs, interest and other (income) expense, income taxes, unoccupied lease charges, loss on extinguishment of debt and the impact to deferred revenue from purchase accounting cannot be predicted with reasonable certainty.
  • These excluded items could be material to results computed in accordance with GAAP in future periods.
  • 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.
  • Adverse impacts of the COVID-19 pandemic on Q2’s business operations and on global economic and financial markets, including on Q2’s customers, partners and suppliers and employees and business.

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 2022

Historical avgQ1 2022

+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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