Q2 Holdings, Inc. · NYSE:QTWO
Q2 — Q2 2024 Earnings Presentation
19 slides from Q2's earnings presentation, Jul 31, 2024
Slide 1: 2nd Quarter 2024 Results
nd 2 Quarter 2024 Results July 31, 2024
Slide 2: Safe Harbor Statement
Sate 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 ourmanagement. The statements and information contained in this prese
Slide 3: 2nd Quarter 2024 Review
2nd Quarter 2024 Review ( 12 ‘Subscription Ant 2 of contracts signed with ¢ banking or len a . hout the second quarte
Slide 4: 2nd Quarter 2024 Results
2d Quarter 2024 Results Q2 Non-GAAP Revenue Gross Profit Revenue Gross Profit Adj EBITDA 20'24 20/23 Totals Y/Y Change Totals $172,890 $154,531 $86,827 $73,828 ($13,060) ($23,622) $172,890 $154,614 $96,319 $83,800 $29,871 $17,626 $ in thousands We closed out the first half of the year with solid sal
Slide 5: 2nd Quarter 2024 Highlights
2-4 Quarter 2024 Highlights Q2 Tier 1 & Enterprise Relationship Pricing Platform Tier 1 Digital Banking Platform Digital Banking Platform * Two new banks, one to utilize Q2’s retail, SMB and commercial solutions, with one also adding commercial in their initial agreement. * Two expansion agreements
Slide 6: Annualized Recurring Revenue
Annualized Recurring Revenue Year-over-year Subscription ARR growth of 19%; Total ARR growth impacted by continued pressure in non-Subscription ARR
Slide 7: Remaining Performance Obligations (RPO, Backlog)
Remaining Performance Obligations (RPO, Backlog) Record year-over-year growth in total dollars added, driven by net new and expansion-based bookings
Slide 8: Financial Outlook
Financial Outlook Represents 10% to 11% full year Non-GAAP revenue growth; full year adjusted EBITDA margin of 17% Low High Low High
Slide 9: Appendix
Appendix Q2
Slide 10: Long Runway to Sustain High Growth and Margin Expansion
Long Runway to sustain High Growth and Margin Expansion Late 2024 Target 1,400+ 19% 5+ Years 79 % 450 >110% 23.6M 64% $17B Total Addressable Market
Slide 11: Condensed Consolidated Balance Sheets
Q2 Holdings, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) June 30, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 303,823 $ 229,655 Restricted cash 2,517 3,977 Investments 68,227 94,353 Accounts receivable, net 59,435 42,899 Contract assets, curren
Slide 12: Condensed Consolidated Statements of Comprehensive Loss
Q2 Holdings, Inc. Condensed Consolidated Statements of Comprehensive Loss (in thousands, except per share data) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues (1) $ 172,890 $ 154,531 $ 338,398 $ 307,539 Cost of revenues (2) 86,063 80,703 169,319 160,41
Slide 13: Condensed Consolidated Statements of Cash Flows
Q2 Holdings, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Six Months Ended June 30, 2024 2023 Cash flows from operating activities: Net loss $ (26,903) $ (24,138) Adjustments to reconcile net loss to net cash from operating activities: Amortization of deferred impl
Slide 14: Reconciliation of GAAP to Non-GAAP Measures
Q2 Holdings, Inc. Reconciliation of GAAP to Non-GAAP Measures (in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 GAAP revenue $ 172,890 $ 154,531 $ 338,398 $ 307,539 Deferred revenue reduction from purchase accounting - 83 - 199 Non-GAAP revenue $ 17
Slide 15: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow Q2 Holdings, Inc. Reconciliation of Free Cash Flow in thousands) (unaudited) Six Months Ended June 30, 2024 2023 Net cash provided by operating activities $ 49,466 $ 16,962 Purchases of property and equipment (2,856) (3,294) Capitalized software development costs (11
Slide 16: Reconciliation of GAAP to Non-GAAP Revenue Outlook
Q2 Holdings, Inc. Reconciliation of GAAP to Non-GAAP Revenue Outlook (in thousands) Q3 2024 Outlook Full Year 2024 Outlook Low High Low High GAAP revenue $ 171,500 $ 174,500 $ 688,500 $ 692,500 Deferred revenue reduction from purchase accounting - - - - Non-GAAP revenue $ 171,500 $ 174,500 $ 688,500
Slide 17: Definitions
Definitions Q2 Adjusted EBITDA: We define adjusted EBITDA as net loss before depreciation, amortization, stock-based compensation, transaction-related costs, provision for income taxes, interest and other (income) expense, net, deferred revenue reduction from purchase accounting, gain on extinguishm
Slide 18: Definitions
Jo Q2 efinitions Customer Tiering: For our financial institution customers, we may refer to their designated tiering, which we use to group customers based upon the total assets they report. We define “Enterprise” customers as having total assets equal to or greater than $50 billion. We define “Tier
Slide 19: Definitions
Definitions Subscription Annualized Recurring Revenue: We calculate Subscription ARR as the annualized value of all recurring subscription revenue recognized in the last month of the reporting period, with the exception of variable revenue in excess of contracted amounts for which we instead take th