NYSE$QTWO

Q2 Holdings Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Q2 Holdings, Inc. announced its financial results, revealing revenue growth and strategic progress.

Q2 Holdings, Inc. reported a 22% year-over-year increase in revenue, reaching $126.7 million for the third quarter of 2021. The company's sales performance improved, with substantial growth in net new bookings and continued strength in expansion activity. Q2 is raising its guidance for both revenue and adjusted EBITDA for the remainder of the year.

  • Revenue for the third quarter reached $126.7 million, a 22% increase year-over-year.
  • GAAP gross margin increased to 45.0%, up from 44.7% in the prior-year quarter.
  • The company signed multiple Tier 1 banks and credit unions to digital banking contracts.
  • Q2 platform has approximately 19.2 million registered users, representing 12% year-over-year growth.

Headline financials

Total Revenue

$127M

Previous: $104M+22.1%
EPS (adj)

$0.03

Previous: $0.07-57.1%
GAAP Gross Margin

45.0%

Previous: 44.7%+0.7%
Adjusted EBITDA

$7.3M

Previous: $8.14M-10.2%
Capital Expenditures

-$16.1M

Previous: -$16.5M+2.9%
Free Cash Flow

-$47.6M

Previous: -$43.3M-10.1%
Net Income

-$31.6M

Previous: -$26.7M-18.2%
Operating Income

-$23M

Previous: -$19.8M-15.7%
Gross Profit

$57M

Previous: $46.4M+22.8%
Cash & Equivalents

$295M

Previous: $365M-19.3%
Total Assets

$1.38B

Previous: $1.29B+6.7%
Stock-Based Comp

$14.4M

Previous: $12M+19.9%

Revenue & EPS history

Q2 · Revenue · Quarterly

$127M

Q3 2021+22.1%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

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

Tailwinds

  • Total non-GAAP revenue of $131.3 million to $132.8 million, which would represent year-over-year growth of 20 to 21 percent.
  • Adjusted EBITDA of $7.3 million to $7.9 million.
  • Total non-GAAP revenue of $499.8 million to $501.3 million, which would represent year-over-year growth of 23 percent.
  • Adjusted EBITDA of $34.4 million to $35.0 million, representing 7 percent of non-GAAP revenue for the year.
  • Based on strong performance in the third quarter and visibility into the fourth quarter, Q2 is raising its guidance for both revenue and adjusted EBITDA for the remainder of the year.

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 Q3 2021

Historical avgQ3 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro