Q2 Holdings, Inc. · NYSE:QTWO
Q2 — Q2 2022 Earnings Presentation
19 slides from Q2's earnings presentation, Aug 3, 2022
Slide 1: 2nd Quarter 2022 Results
nd 2 Quarter 2022 Results August 3, 2022 The information in the following presentation is confidential and proprietary.
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and the accompanying oral presentation contain forward-looking statements and information that are based on our management's beliefs and assumptions and on information currently available to our management. The statements and information contained in this pres
Slide 3: 2nd Quarter 2022 Results
2nd Quarter 2022 Results “We are pleased with our performance to close out the first half of the year. We had several key 2Q’22 2Q’21 wins across all of our lines of business, Totals Y/Y Change Totals highlighted by some of our largest digital banking and lending deals in company history. Revenue $1
Slide 4: 2nd Quarter 2022 Review
2nd Quarter 2022 Review $399.3M End of Quarter balance of cash, cash equivalents & investments3 $ 615.5M $ 9.7M 140.5M in Adjusted EBITDA3 Annualized Recurring Revenue1 $ 3 $ 1.4B ending backlog as of June 30, 2022 NON-GAAP REVENUE 13% non-GAAP revenue growth year-over-year3 20.2M Total Registered E
Slide 5: 2nd Quarter Highlights
2nd Quarter Highlights Partnering with Strategic Customers, Digitizing the Entire Bank • Signed a digital-only bank for a broad set of solutions led by retail digital banking, Multiple which represents one of our ten largest digital banking deals in company history. Tier 1 & • Signed a Tier 1 bank t
Slide 6: Annualized Recurring Revenue
Annualized Recurring Revenue Year-over-year growth driven from bookings improvement and increasing variable revenue run rate 17% Y/Y Growth 16% Y/Y Growth $615.5 $ in Millions $526.8 $455.4 Q2 '20 Q2 '21 Q2 '22 6
Slide 7: Remaining Performance Obligation (Backlog)
Remaining Performance Obligation (Backlog) Year-over-year growth driven from net new & renewal bookings; sequential decline primarily due to lower renewal opportunities in the quarter $ 1.37B 8% 1 - % Q/Q Growth Y/Y Growth RPO Balance as of June 30, 2022 $1.39 $ in Billions $ in Billions RPO Expecte
Slide 8: Registered User Growth
Registered User Growth Driven from organic user growth 15% 7% Y/Y Growth Y/Y Growth In Millions Added approximately 1.4M Users Year-over-year 1 Registered Users as defined in the appendix of this presentation. 8
Slide 9: Financial Outlook
Financial Outlook Reflects 15%-16% full year revenue growth and full year EBITDA margins of 7%-8% Q3 2022 Full Year 2022 Low High Low High Non-GAAP Revenue $145.8 $147.8 $577.5 $581.5 Adj EBITDA $6.2 $8.2 $41.4 $44.4 $ In Millions $ In Millions As of August 3, 2022, Q2 Holdings is providing guidance
Slide 10: Appendix
Appendix The information in the following presentation is confidential and proprietary.
Slide 11: Strong Visibility, High Retention, Expanding Opportunity
Strong Visibility, High Retention, Expanding Opportunity Long Runway to sustain High Growth and Margin Expansion +1,400 30% +5 Years 70% Avg. Customer Gross Total Customers1 Revenue CAGR since IPO2 Avg. Contract Length3 Margin at Renewal4 448 Digital Banking Platform 120% 2026 Targets Avg. Annual Ne
Slide 12: Condensed Consolidated Balance Sheets
Q2 Holdings, Inc. Condensed Condensed Consolidated Balance Sheets (in thousands) (unaudited) June 30, December 31, 2022 2021 Consolidated Assets Current assets: Cash and cash equivalents $ 211,127 $ 322,848 Restricted cash 2,965 2,973 Balance Sheets Investments 188,222 104,878 Accounts receivable, n
Slide 13: Condensed Consolidated Statements of Comprehensive Loss
Condensed Q2 Holdings, Inc. Condensed Consolidated Statements of Comprehensive Loss (in thousands, except per share data) Consolidated (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Statements of Revenues (1) Cost of revenues (2) Gross profit $ 140,309 77,421 6
Slide 14: Condensed Consolidated Statements of Cash Flows
Condensed Q2 Holdings, Inc. Condensed Consolidated Statements of Cash Flows Consolidated (in thousands) (unaudited) Six Months Ended June 30, 2022 2021 Statements of Cash flows from operating activities: Net loss Adjustments to reconcile net loss to net cash from operating activities: $ (48,781) $ (
Slide 15: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Q2 Holdings, Inc. Q2 Holdings, Inc. Reconciliation of GAAP to Non-GAAP Measures Reconciliation of GAAP to Non-GAAP Measures (in thousands, except per share data) (in thousands, except per share data) (unaudited) (unaudited) Three Months Ended June 30, Thre
Slide 16: Reconciliation of GAAP to Non-GAAP Revenue Guidance
Reconciliation of GAAP to Non-GAAP Revenue Guidance Q2 Holdings, Inc. Reconciliation of GAAP to Non-GAAP Revenue Outlook (in thousands) Q3 2022 Outlook Full Year 2022 Outlook Low High Low High GAAP revenue $ 145,658 $ 147,658 $ 576,818 $ 580,818 Deferred revenue reduction from purchase accounting 14
Slide 17: Definitions
Definitions Adjusted EBITDA: We define adjusted EBITDA as net loss before depreciation, amortization, stock-based compensation, certain costs related to our recent acquisitions, (benefit from) provision for income taxes, interest and other (income) expense, net, deferred revenue reduction from purch
Slide 18: Definitions
Definitions Cloud Lending Platform: Our Q2 Cloud Lending, or CL, digital lending platform is a cloud-based, end-to-end lending solution that allows financial institutions, FinTechs and Alt-FIs to automate and digitize their lending activities, supporting digital lending applications, scoring, underw
Slide 19: Definitions
Definitions Non-GAAP Revenue: We define non-GAAP revenue as total revenue excluding the impact of purchase accounting. We monitor these measures to assess our performance because we believe our revenue growth rates would be understated without these adjustments. We believe presenting non-GAAP revenu