Q2 Holdings, Inc. · NYSE:QTWO
Q2 — Q1 2022 Earnings Presentation
20 slides from Q2's earnings presentation, May 2, 2022
Slide 1: 1st Quarter 2022 Results
st 1 Quarter 2022 Results May 2, 2022
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: 1st Quarter 2022 Results
1st Quarter 2022 Results 10'22 10/21 Totals Y/Y Change Totals Revenue $134,071 15% $1 16,520 Gross Profit $60,399 14% $53,201 ($23,559) 8% ($25,655) Gross Profit $68,984 12% $61,537 Non-GAAP Q2 The first quarter represented a solid start to the year. We signed a broad range of deals, both in digital
Slide 4: 1st Quarter 2022 Review
1st Quarter 2022 Review ¢ 2 ‘Total Annualized Recurring Revenue as of March 31, 2022.2 Number of contracts signed with customers above $5 billion in assets (Tier 1) and $50 billion in assets (Enterprise) collectively, to utilize our di banking or lending platform, respectively, in the first quarter
Slide 5: 1st Quarter Highlights
1st Quarter Highlights Continued Sales Success, Leading the Industry in Delivering “The Digital Bank” 3 Tier 1 Digital Banking Platform • • Two Tier 1 banks to utilize our retail and commercial digital banking solutions Tier 1 bank to utilize our commercial digital banking solutions 2 1 Enterprise &
Slide 6: Annualized Recurring Revenue
Annualized Recurring Revenue Year-over-year growth acceleration reflecting strength of bookings and variable revenue run rate
Slide 7: Remaining Performance Obligation, "Backlog"
Remaining Performance Obligation, “Backlog” Year-over-year growth driven from net new & renewal bookings; slight sequential decline due to seasonality
Slide 8: Registered User Growth
Registered User Growth Driven from strong organic growth Added over Year-over-year
Slide 9: Reflects 15%-16% full year revenue growth and full year EBITDA margins of 7%-8%
Reflects 15%-16% full year revenue growth and full year EBITDA margins of 7%-8% Low High Low High
Slide 10: Positioned to drive long-term value
Positioned to drive long-term value 1 2 2026
Slide 11: Appendix
Appendix Q2
Slide 12: Long Runway to sustain High Growth and Margin Expansion
Long Runway to sustain High Growth and Margin Expansion +1,300 30% +5 Years 70% 448 120% 2026 Targets $1.2B +60% +20% ~19.7M 48% Total Revenue Gross Margin Adjusted EBITDA Installed Digital Banking customers as of December 31, 2021. Average Net Revenue Retention for full years 2019 , 2020 and 2021.
Slide 13: Condensed Consolidated Balance Sheets
Q2 Holdings, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) March 31, December 31, 2022 2021 Assets Current assets: Cash and cash equivalents $ 225,544 $ 322,848 Restricted cash 2,978 2,973 Investments 188,144 104,878 Accounts receivable, net 36,601 46,979 Contract assets, cur
Slide 14: 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 March 31, 2022 2021 Revenues (1) $ 134,071 $ 116,520 Cost of revenues (2) 73,672 63,319 Gross profit 60,399 53,201 Operating expenses: Sales and marketing 25
Slide 15: Condensed Consolidated Statements of Cash Flows
Q2 Holdings, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended March 31, 2022 2021 Cash flows from operating activities: Net loss $ (23,559) $ (25,655) Adjustments to reconcile net loss to net cash from operating activities: Amortization of deferred i
Slide 16: 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 March 31, Three Months Ended March 31, 2022 2021 2022 202
Slide 17: Reconciliation of GAAP to Non-GAAP Revenue Outlook
Q2 Holdings, Inc. Reconciliation of GAAP to Non-GAAP Revenue Outlook (in thousands) Q2 2022 Outlook Full Year 2022 Outlook Low High Low High GAAP revenue $ 139,333 $ 140,833 $ 576,819 $ 580,819 Deferred revenue reduction from purchase accounting 167 167 681 681 Non-GAAP revenue $ 139,500 $ 141,000 $
Slide 18: Definitions
Definitions Q2 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 pu
Slide 19: 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 20: 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