Q2 Holdings, Inc. · NYSE:QTWO
Q2 — Q2 2023 Earnings Presentation
19 slides from Q2's earnings presentation, Aug 2, 2023
Slide 1: 2nd Quarter 2023 Results
nd 2 Quarter 2023 Results August 2, 2023
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 our management. The statements and information contained in this pres
Slide 3: 2nd Quarter 2023 Review
2d Quarter 2023 Review $681.2M ftaceatval Saver! “ eg ae NON-GAAP REVENUE 4 Tier One Digital Banking and Lending Platform Wins? ring Revenue as of June the second quarter ended Jt $5 billion in assets (Tier 1) to utiliz $280M End of Quarter balance of cash, cash equivalents & investments? $17.6M in
Slide 4: 2nd Quarter 2023 Results
2d Quarter 2023 Results 20'23 20/22 Totals Y/Y Change Totals Revenue $154,531 10% $140,309 Gross Profit $73,828 17% $62,888 ($23,622) (6%) ($25,222) Gross Profit $83,800 $71,995 Non-GAAP $ in thousands Q2 We continued our solid bookings performance in the second quarter, closing out our best first h
Slide 5: Continued Success Across the Business Tier
Continued Success Across the Business 2 Tier 1 Digital Banking Platform • • Tier 1 bank to utilize a broad set of solutions led by retail banking. Tier 1 bank to utilize our retail, small business and commercial banking solutions. 2 Tier 1 Digital Lending Platform • • Expansion with a Top 100 U.S. b
Slide 6: Annualized Recurring Revenue
Annualized Recurring Revenue Year-over-year subscription ARR growth of 16% was partially offset by a continued moderation in transactional and services ARR
Slide 7: Remaining Performance Obligations (RPO, Backlog)
Remaining Performance Obligations (RPO, Backlog) Year-over-year growth driven from net new & renewal bookings strength; marginal sequential decline due to seasonality Q2'22 Q2'23 Q1'23 Q2'23
Slide 8: Digital Banking Registered User Growth
Digital Banking Registered User Growth Consistent user growth driven from new customers and organic contribution Added over Year-over-year
Slide 9: Financial Outlook
Financial Outlook Would represent 9-11% full year Non-GAAP revenue growth and full year adjusted EBITDA margins of 11-12% Low High Low High
Slide 10: Appendix
Appendix Q2
Slide 11: Long Runway to Sustain High Growth and Margin Expansion
Long Runway to sustain High Growth and Margin Expansion +1,400 Late 2024 Target 11% +5 Years ~75% 444 +80% ~21.7M 54% $15B Total Addressable Market 1 Total numbers of customers signed as of December 31, 2022. 2 Annualized Recurring Revenue (ARR) growth as measured from the total balance on June 30,
Slide 12: Condensed Consolidated Balance Sheets
Q2 Holdings, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) June 30, December 31, 2023 2022 Assets Current assets: Cash and cash equivalents $ 118,229 $ 199,600 Restricted cash 2,298 2,302 Investments 161,777 233,753 Accounts receivable, net 38,671 46,735 Contract assets, curr
Slide 13: Condensed Consolidated Statements of Comprehensive Income (Loss)
Q2 Holdings, Inc. Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands, except per share data) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenues (1) $ 154,531 $ 140,309 $ 307,539 $ 274,380 Cost of revenues (2) 80,703 77,421 160,4
Slide 14: Condensed Consolidated Statements of Cash Flows
Q2 Holdings, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Six Months Ended June 30, 2023 2022 Cash flows from operating activities: Net loss $ (24,138) $ (48,781) Adjustments to reconcile net loss to net cash from operating activities: Amortization of deferred impl
Slide 15: 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, 2023 2022 2023 2022 GAAP revenue $ 154,531 $ 140,309 $ 307,539 $ 274,380 Deferred revenue reduction from purchase accounting 83 169 199 411 Non-GAAP revenue
Slide 16: Reconciliation of GAAP to Non-GAAP Revenue Outlook
Q2 Holdings, Inc. Reconciliation of GAAP to Non-GAAP Revenue Outlook (in thousands) Q3 2023 Outlook Full Year 2023 Outlook Low High Low High GAAP revenue $ 153,424 $ 156,424 $ 619,655 $ 627,655 Deferred revenue reduction from purchase accounting 76 76 345 345 Non-GAAP revenue $ 153,500 $ 156,500 $ 6
Slide 17: Definitions
Definitions Q2 Adjusted EBITDA: We define adjusted EBITDA as net loss before depreciation, amortization, stock-based compensation, transaction-related costs, (benefit from) provision for income taxes, interest and other (income) expense, net, deferred revenue reduction from purchase accounting, (gai
Slide 18: Definitions
Definitions Q2 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-Fls to automate and digitize their lending activities, supporting digital lending applications, scoring, und
Slide 19: Definitions
| Definitions Q2 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 r