NYSE$QTWO
Q2 Holdings Inc · Q4 2020 earnings
Q4 2020 earnings · · Investor relations
Briefing
Announced fourth quarter and full-year 2020 financial results.
Q2 Holdings reported a 26% year-over-year increase in revenue for the fourth quarter, reaching $109.0 million. The company exceeded the high end of its revenue guidance, with free cash flow at $11.6 million and ending the year with $539.1 million in cash, cash equivalents, and investments.
- Signed a loan pricing contract with an enterprise bank in the United States.
- Signed a commercial banking contract with an existing Tier 1 customer, an $8 billion financial institution.
- Signed a loan pricing contract with an existing Tier 1 customer, a $6 billion financial institution.
- Exited the fourth quarter with approximately 17.8 million registered users on the Q2 Platform, representing 22 percent year-over-year growth.
Headline financials
Revenue & EPS history
Q2 · Revenue · Quarterly
$109M
Forward guidance
Q2 Holdings is providing guidance for its first quarter of 2021 and full-year 2021. Total non-GAAP revenue of $114.6 million to $116.1 million, which would represent year-over-year growth of 22 percent to 24 percent. Adjusted EBITDA of $8.5 million to $9.1 million.
Tailwinds
- Total non-GAAP revenue of $114.6 million to $116.1 million, which would represent year-over-year growth of 22 percent to 24 percent.
- Adjusted EBITDA of $8.5 million to $9.1 million.
- Total non-GAAP revenue of $488.0 million to $491.0 million, which would represent year-over-year growth of 20 to 21 percent.
- Adjusted EBITDA of $34.5 million to $36.5 million, representing 7 percent of non-GAAP revenue for the year.
- Our delivery teams had a particularly good quarter, closing out a record year in which we added over 3.1 million registered users.
Headwinds
- The risk of increased competition in its existing markets and as it enters new sections of the market with Tier 1 customers, new markets with Alt-FIs and fintechs and new products and services
- The risk that COVID-19, government actions or other factors continue to 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, in particular with respect to Tier 1 customers and Alt-FI and fintech customers
- The risk that Q2's increased focus on selling to larger Tier 1 customers may result in greater uncertainty and variability in Q2's business and sales results
- The risk that changes in Q2’s market, business or sales organization negatively impact its ability to sell its products and services
- 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
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 Q4 2020
+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
| Quarter | Report date | Reaction (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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