Q2 Holdings, Inc. · NYSE:QTWO
Q2 — Q4 2021 Earnings Presentation
23 slides from Q2's earnings presentation, Feb 15, 2022
Slide 1: 4th Quarter and Full-Year 2021 Results
4th Quarter and Full-Year 2021 Results February 15, 2022
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: Full Year 2021 Review
Full Year 2021 Review $427.7M End of Year balance of cash, cash equivalents & investments? $574.2M $37.9M - in Adjusted EBITDA* End of Year Annualized Recurring Revenue! $ 5 O O 8 M 3 e $1.40B % Bees aa NON-GAAP REVENUE 2 3 non-GAAP revenue growth 2 2 year-over-year? Enterprise and Tier One Digital
Slide 4: 4th Quarter & Full-Year 2021 Review
4th Quarter & Full-Year 2021 Review Non-GAAP @) IN Revenue $131,891 Gross Profit $59,484 Net Loss ($25,381) Gross Profit $68,1 86 $498,720 $225,035 ($112,746) $260,132
Slide 5: 4th Quarter Sales Highlights
4th Quarter Sales Highlights Broad sales success across the business 3 Tier 1 Digital Banking Platform • • • Top 100 U.S. Bank for Retail & Small Business solutions Tier 1 Bank for Retail, Small Business & Corporate Solutions Tier 1 Credit Union for Corporate Solutions 5 • Top 5 Canadian Bank for Lo
Slide 6: Annualized Recurring Revenue
Annualized Recurring Revenue Year-over-year growth acceleration reflecting strength of bookings and renewals
Slide 7: Remaining Performance Obligation, “Backlog”
Remaining Performance Obligation, “Backlog” Strong bookings performance combined with best renewal quarter of the year
Slide 8: Registered User Growth
Registered User Growth Full-year user growth concentrated in the first half of 2021 Added over in Full-Year 2021
Slide 9: Net Revenue Retention Rate
Net Revenue Retention Rate Maintaining strong net revenue retention rates driven by cross-sales & organic growth 122% 120% 119%
Slide 10: Revenue Growth from Existing Digital Banking Platform Customers
Revenue Growth from Existing Digital Banking Platform Customers
Slide 11: Diverse base of customers across asset size and customer type
Diverse base of customers across asset size and customer type
Slide 12: Reflects 15-16% full year revenue growth and full year EBITDA margins of 7% to 8%
Reflects 15-16% full year revenue growth and full year EBITDA margins of 7% to 8% Low High Low High
Slide 13: Positioned to drive long-term value
Positioned to drive long-term value 1 2 2026
Slide 14: Appendix
Z Appendix Q2
Slide 15: Long Runway to sustain High Growth and Margin Expansion
Long Runway to sustain High Growth and Margin Expansion +1,300 30% +5 Years 70% 448 119% 2026 Targets $ 1.2B +60% +20% ~19.2M 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 16: Condensed Consolidated Balance Sheets
Q2 Holdings, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) December 31, December 31, 2021 2020 Assets Current assets: Cash and cash equivalents $ 322,848 $ 407,703 Restricted cash 2,973 3,482 Investments 104,878 131,352 Accounts receivable, net 46,979 36,430 Contract assets,
Slide 17: 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 December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Revenues (1) $ 131,891 $ 108,986 $ 498,720 $ 402,751 Cost of revenues (2) 72,407 64,476 273
Slide 18: Condensed Consolidated Statements of Cash Flows
Q2 Holdings, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Twelve Months Ended December 31, 2021 2020 Cash flows from operating activities: Net loss $ (112,746) $ (137,620) Adjustments to reconcile net loss to net cash from operating activities: Amortization of defe
Slide 19: 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 December 31, Twelve Months Ended December 31, Three Month
Slide 20: Reconciliation of GAAP to Non-GAAP Revenue Outlook
Q2 Holdings, Inc. Reconciliation of GAAP to Non-GAAP Revenue Outlook (in thousands) Q1 2022 Outlook Full Year 2022 Outlook Low High Low High GAAP revenue $ 131,258 $ 132,758 $ 575,320 $ 580,320 Deferred revenue reduction from purchase accounting 242 242 680 680 Non-GAAP revenue $ 131,500 $ 133,000 $
Slide 21: Definitions
J 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 pur
Slide 22: Definitions
J 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-Fls to automate and digitize their lending activities, supporting digital lending applications, scoring, unde
Slide 23: Definitions
J 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 reve