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Q2 Holdings, Inc. (NYSE:QTWO), a leading provider of secure virtual banking solutions to regional and community financial institutions, today announced results for its second quarter ended June 30, 2014.
Second Quarter 2014 Results
Revenue for the second quarter of $19.2 million, up 36 percent year-over-year and 14 percent from the prior quarter.
Non-GAAP gross margin of 44.2 percent, up 410 basis points from the prior quarter and up 360 basis points from one year ago. GAAP gross margin for the period was 43.5 percent.
Adjusted EBITDA of negative $2.5 million, an improvement of $1 million from the prior quarter and compares to $2.4 million one year ago. GAAP Net loss of $4.7 million for the period.
“I am pleased to report strong results in Q2’s second quarter as a publicly traded company,” said Matt Flake, president and CEO of Q2 Holdings, Inc. “Our performance demonstrates strong execution across the organization. We’re seeing our single platform architecture win with banks and credit unions of all sizes and we continue to deliver new and innovative products to the market. We’re excited about our success and look forward to continuing to capitalize on the digital transformation occurring in the financial services industry.”
Second Quarter 2014 Highlights
Significantly increased new customer wins quarter-over-quarter, demonstrating the success of our single platform and differentiated technology, and a positive return on Q2’s investments in salesforce capacity and productivity.
Continued bookings momentum, signing two Top 100 financial institutions 1 in the quarter and continued traction with these larger customers.
Exited the second quarter with approximately 3.9 million registered users on the Q2 platform, representing 36 percent year-over-year growth and 13 percent quarter-over-quarter growth.
Announced availability of version 4.0 of the Q2 Virtual Banking platform which offers improved commercial functionality and greater ease of use.
Q2 Holdings is providing guidance for its third quarter 2014 as follows:
Total revenues of $19.5 million to $19.8 million.
Adjusted EBITDA of negative $3.4 million to negative $3.1 million.
Q2 Holdings is providing guidance for the full-year 2014 as follows:
Total revenues of $76.2 million to $76.8 million, which would represent year-over-year growth of 34 percent to 35 percent.
Adjusted EBITDA of negative $12.4 million to negative $12 million.
Conference Call Details
Aug. 7, 2014
5:00 p.m. EDT
Matt Flake, CEO / Jennifer Harris, CFO
US toll free: 1-877-201-0168
Please join the conference call at least 10 minutes before start time to ensure the line is connected. A live webcast of the conference call will be accessible from the investor relations section of the Q2 Holdings, Inc. website at
A replay of the webcast will also be available at this website on a temporary basis shortly after the call.