Q2 Holdings Inc (NYSE:QTWO)
$ 75.58 3.53 (4.9%) Market Cap: 4.55 Bil Enterprise Value: 4.52 Bil PE Ratio: 0 PB Ratio: 9.47 GF Score: 64/100
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Q2 2024 Q2 Holdings Inc Earnings Call Transcript

Jul 31, 2024 / 09:00PM GMT
Release Date Price: $67.47 (+1.58%)

Key Points

Positve
  • Q2 Holdings Inc (QTWO) exceeded the high end of their guidance with non-GAAP revenue of $172.9 million, up 12% year over year.
  • Subscription revenue grew by 17% year over year, indicating strong demand for their services.
  • The company delivered free cash flow of $28.8 million, a significant increase from the previous year.
  • Q2 Holdings Inc (QTWO) secured six Tier 1 deals, including an enterprise win, showcasing their competitive edge.
  • The annual customer conference, CONNECT, was highly successful, with positive feedback on strategic product roadmaps and innovation priorities.
Negative
  • Professional services revenue continues to decline, impacting overall revenue growth.
  • The company faces headwinds in the services segment, with a continued decline expected for the foreseeable future.
  • There is uncertainty around the impact of potential M&A activity on future growth.
  • The seasonality of the Helix business and professional services revenue decline are expected to impact Q3 results.
  • The company is cautious about the adoption of AI and generative AI due to the risk-averse nature of financial institutions.
Operator

Good afternoon. My name is Alex, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q2 Holdings second-quarter 2024 financial results conference call. (Operator Instructions)

I would like now to turn the call over to Josh Yankovich, which Investor Relations. Sir, please begin.

Josh Yankovich
Q2 Holdings Inc - IR Contact Officer

Thank you, operator. Good afternoon, everyone, and thank you for joining us for our second-quarter 2024 conference call. With me on the call today are Matt Flake, our CEO; David Mehok, our CFO; Jonathan Price, our Executive Vice President, Strategy, and Emerging businesses; Kirk Coleman, our President, who will join us for the Q&A portion of the call.

This call today forward-looking statements that are subject to significant risks and uncertainties, including among other things with respect to our expectations for the future operating and financial performance of Q2 Holdings for the financial services industry. Actual results may differ materially from those

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