Q2 Holdings, Inc. · NYSE:QTWO
Q2 — Q3 2022 Earnings Presentation
19 slides from Q2's earnings presentation, Nov 7, 2022
Slide 1: 3rd Quarter 2022 Results
rd 3 Quarter 2022 Results November 7, 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: 3rd Quarter 2022 Results
3rd Quarter 2022 Results “The third quarter represented our strongest bookings performance of the year. Our sales success came from a mix of key wins across 3Q’22 3Q’21 digital banking, lending and Helix, with one Totals Y/Y Change Totals Enterprise and five Tier 1 deals in total. I am encouraged by
Slide 4: 3rd Quarter 2022 Review
3rd Quarter 2022 Review $395.7M End of Quarter balance of cash, cash equivalents & investments3 $10.8M $ 633.7M 144.9M in Adjusted EBITDA3 Annualized Recurring Revenue1 $ 3 $ 1.4B ending backlog as of September 30, 2022 NON-GAAP REVENUE 14% non-GAAP revenue growth year-over-year3 6 Enterprise and Ti
Slide 5: 3rd Quarter Highlights
3rd Quarter Highlights Continued Sales Success, Leading the Industry in Delivering “The Digital Bank” 1 3 • Enterprise, Top 50 U.S. bank to utilize our commercial and small business digital Enterprise Tier 1 banking solutions. & • • Tier 1, Top 50 U.S. credit union to utilize our commercial digital
Slide 6: Annualized Recurring Revenue
Annualized Recurring Revenue Year-over-year growth primarily driven from bookings performance with Enterprise and Tier 1 wins 18% Y/Y Growth 17% Y/Y Growth $633.7 $ in Millions $537.7 $461.2 Q3'20 Q3'21 Q3'22 6
Slide 7: Remaining Performance Obligation (Backlog)
Remaining Performance Obligation (Backlog) Year-over-year and sequential growth driven primarily by net new & renewal bookings; sequential growth also driven from increased renewal activity in the quarter $ 1.39B 8% 2% Q/Q Growth Y/Y Growth RPO Balance as of September 30, 2022 $ in Billions $ in Bil
Slide 8: Digital Banking Registered User Growth
Digital Banking Registered User Growth Driven primarily from organic user growth and new go-lives during the quarter 12% 9% Y/Y Growth Y/Y Growth In Millions 20.9 19.2 Added over 17.1 1.7M Users Year-over-year Q3'20 Q3'21 Q3'22 1 Registered Users as defined in the appendix of this presentation. 8
Slide 9: Financial Outlook
Financial Outlook Reflects 13%-14% full year revenue growth and full year EBITDA margins of 7-8% Q4 2022 Full Year 2022 Low High Low High Non-GAAP Revenue $148.4 $150.4 $568.0 $570.0 Adj EBITDA $10.5 $12.5 $39.0 $41.0 $ In Millions $ In Millions As of November 7, 2022, Q2 Holdings is providing guida
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 448 120 % ~20.9M 48% Avg. Customer Contracted Digital Bankin
Slide 12: Condensed Consolidated Balance Sheets
Q2 Holdings, Inc. Condensed Condensed Consolidated Balance Sheets (in thousands) (unaudited) September 30, December 31, Consolidated 2022 2021 Assets Current assets: Cash and cash equivalents $ 192,574 $ 322,848 Restricted cash 2,732 2,973 Balance Sheets Investments Accounts receivable, net Contract
Slide 13: Condensed Consolidated Statements of Comprehensive Loss
Condensed Q2 Holdings, Inc. Condensed Consolidated Statements of Comprehensive Loss (in thousands, except per share data) (unaudited) Consolidated Three Months Ended September 30, 2022 2021 Revenues (1) $ 144,751 $ 126,736 Statements of Cost of revenues (2) Gross profit 77,895 66,856 69,726 57,010 O
Slide 14: Condensed Consolidated Statements of Cash Flows
Condensed Q2 Holdings, Inc. Condensed Consolidated Statements of Cash Flows Consolidated (in thousands) (unaudited) Nine Months Ended Sepember 30, 2022 2021 Statement of Cash flows from operating activities: Net loss Adjustments to reconcile net loss to net cash from operating activities: $ (76,572)
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 September 30,
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) Q4 2022 Outlook Full Year 2022 Outlook Low High Low High GAAP revenue $ 148,271 $ 150,271 $ 567,356 $ 569,356 Deferred revenue reduction from purchase accounting 12
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