Q2 Holdings, Inc. Announces Fourth Quarter and Full-Year 2021 Financial Results
Q2 Holdings (QTWO) reported robust financial results for Q4 and FY 2021, achieving a 21% year-over-year revenue increase in Q4, totaling $131.9 million, and $498.7 million for the year, a 24% increase. The GAAP gross margin improved to 45.1% in Q4. While the GAAP net loss was $25.4 million for Q4 and $112.7 million for the full year, both figures showed improvement compared to prior periods. Adjusted EBITDA rose to $10.8 million in Q4, reflecting strong operational execution. Guidance for 2022 suggests continued growth.
- Fourth-quarter revenue increased by 21% year-over-year to $131.9 million.
- Full-year revenue rose by 24% year-over-year to $498.7 million.
- GAAP gross margin for Q4 improved to 45.1%, up from 40.8% year-over-year.
- Annualized recurring revenue reached $574.2 million, a 24% increase from 2020.
- Trailing twelve-month net revenue retention rate was 119%, indicating strong customer loyalty.
- GAAP net loss for Q4 was $25.4 million, though improved from previous quarters.
- Full-year GAAP net loss of $112.7 million, despite year-over-year reduction.
GAAP Results for the Fourth Quarter and Full-Year 2021
-
Revenue for the fourth quarter of
, up 21 percent year-over-year and up 4 percent from the third quarter of 2021. Full-year 2021 revenue of$131.9 million , up 24 percent year-over-year.$498.7 million
- GAAP gross margin for the fourth quarter of 45.1 percent, up from 40.8 percent for the prior-year quarter and 45.0 percent for the third quarter of 2021. GAAP gross margin for full-year 2021 of 45.1 percent, up from 43.4 percent for the full-year 2020.
-
GAAP net loss for the fourth quarter of
, compared to GAAP net losses of$25.4 million for the prior-year quarter and$37.8 million for the third quarter of 2021. GAAP net loss for full-year 2021 of$31.6 million , compared to$112.7 million for full-year 2020.$137.6 million
Non-GAAP Results for the Fourth Quarter and Full-Year 2021
-
Non-GAAP revenue for the fourth quarter of
, up 21 percent year-over-year and up 4 percent from the third quarter of 2021. Full-year 2021 non-GAAP revenue of$132.3 million , up 23 percent year-over-year.$500.8 million
- Non-GAAP gross margin for the fourth quarter of 51.5 percent, up from 48.3 percent for the prior-year quarter and down from 51.9 percent for the third quarter of 2021. Non-GAAP gross margin for full-year 2021 of 51.9 percent, consistent with 51.9 percent for full-year 2020.
-
Adjusted EBITDA for the fourth quarter of
, up from$10.8 million for the prior-year quarter and$6.1 million for the third quarter of 2021. Full-year 2021 adjusted EBITDA of$7.3 million up from$37.9 million for the full-year 2020.$22.2 million
For a reconciliation of our GAAP to non-GAAP results, please see the tables below.
“We exited 2021 with strong results, delivering both the second largest bookings quarter and best half-year of bookings performance in company history,” said Q2 CEO
Fourth Quarter Highlights
Sales Success Across the Business
-
Signed three Tier 1 digital banking contracts, including a:
- Tier 1, Top 100 U.S. bank to utilize our retail & small business solutions;
- Tier 1 bank to utilize our full digital banking suite including retail, small business and corporate digital banking solutions; and
- Tier 1 credit union to utilize our corporate digital banking solutions.
-
Signed five enterprise and two Tier 1 digital lending contracts to utilize our loan pricing solutions, including a(n):
-
Enterprise, Top 5 Canadian bank which signed separate deals in both
Canada and theU.S. ; - Enterprise, Top 5 U.S. bank;
- Enterprise, Top 10 U.S. bank to expand the lines of business which utilize our loan pricing solutions;
- Enterprise, Top 25 U.S. bank;
- Tier 1, Top 100 U.S. bank to adopt the full loan pricing solution suite; and
-
Tier 1, financial institution in the
U.S.
-
Enterprise, Top 5 Canadian bank which signed separate deals in both
- Signed two Tier 1 digital lending contracts to utilize our treasury onboarding solution.
- Signed multi-year renewals with three of our top five Helix customers.
- Signed one enterprise and four Tier 1 digital banking contracts to utilize our ClickSWITCH solutions.
Strong Year-End Results due to Sales and Operational Execution
-
Annualized Recurring Revenue increased to
, up$574.2 million 24% year-over-year from at the end of 2020.$464.2 million
-
Our Remaining Performance Obligation total, or Backlog, increased by
sequentially resulting in total committed Backlog of over$121.7 million , representing$1.4 billion 10% year-over-year growth and9% sequential growth.
-
Our trailing twelve-month net revenue retention rate was
119% , down slightly from122% in the prior year.-
122% retention rate in 2020 included contribution from the acquisition of PrecisionLender in the fourth quarter of 2019.
-
-
Our annual revenue churn was
5.4% , down from5.9% in the prior year.
-
Exited the fourth quarter with approximately 19.2 million registered users on the Q2 digital banking platform, representing
8% year-over-year growth and consistent with the previous quarter.
“We were pleased with our financial performance for the quarter with revenue results near the high-end of our guidance and EBITDA well exceeding our guidance,” said
Financial outlook
As of
-
Total non-GAAP revenue of
to$131.5 million , which would represent year-over-year growth of 12 to 14 percent.$133.0 million
-
Adjusted EBITDA of
to$7.7 million , representing 6 to 7 percent of non-GAAP revenue for the quarter.$8.7 million
-
Total non-GAAP revenue of
to$576.0 million , which would represent year-over-year growth of 15 percent to 16 percent.$581.0 million
-
Adjusted EBITDA of
to$40.9 million , representing 7 to 8 percent of non-GAAP revenue for the year.$43.9 million
Conference Call Details
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Webcast Registration: |
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Conference Call Registration: |
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All participants must register using either above link (webcast or conference call). A webcast of the conference call, financial results and associated materials will be accessible from the investor relations section of the Q2 website at http://investors.Q2.com/. In addition, a live conference call dial-in will be available upon registration. Participants should dial in at least 10 minutes before the start of the conference. An archived replay of the webcast will be available on this website for a limited time after the call. Q2 has used, and intends to continue to use, its investor relations website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
About
Q2 is a financial experience company dedicated to providing digital banking and lending solutions to banks, credit unions, alternative finance, and fintech companies in the
Use of Non-GAAP Measures and Key Operating Measures
Q2 uses the following non-GAAP financial measures: non-GAAP revenue; adjusted EBITDA; non-GAAP gross margin; non-GAAP gross profit; non-GAAP sales and marketing expense; non-GAAP research and development expense; non-GAAP general and administrative expense; non-GAAP operating expense; non-GAAP operating income (loss); non-GAAP net income; non-GAAP net income per share; and non-GAAP diluted weighted-average number of common shares outstanding. Management believes that these non-GAAP financial measures are useful measures of operating performance because they exclude items that Q2 does not consider indicative of its core performance.
In the case of non-GAAP revenue, Q2 adjusts revenue to exclude the impact to deferred revenue from purchase accounting adjustments. In the case of adjusted EBITDA, Q2 adjusts net loss for such items as interest and other (income) expense, taxes, depreciation and amortization, stock-based compensation, acquisition-related costs, unoccupied lease charges, partnership termination charges and the impact to deferred revenue from purchase accounting. In the case of non-GAAP gross margin and non-GAAP gross profit, Q2 adjusts gross profit and gross margin for stock-based compensation amortization of acquired technology, acquisition-related costs, and the impact to deferred revenue from purchase accounting. In the case of non-GAAP sales and marketing expense, non-GAAP research and development expense, and non-GAAP general and administrative expense, Q2 adjusts the corresponding GAAP expense to exclude stock-based compensation. Non-GAAP Operating Expense is calculated by taking the sum of non-GAAP sales and marketing expenses, non-GAAP research and development expense, and non-GAAP general and administrative expense. In the case of non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP net income (loss) per share, Q2 adjusts operating loss and net loss, respectively, for stock-based compensation, acquisition-related costs, amortization of acquired technology, amortization of acquired intangibles, unoccupied lease charges, partnership termination charges, loss on extinguishment of debt and the impact to deferred revenue from purchase accounting, and with respect to non-GAAP net income, amortization of debt discount and issuance costs and loss on extinguishment of debt. In the case of non-GAAP diluted weighted-average number of common shares outstanding, Q2 adjusts diluted weighted-average number of common shares outstanding by the weighted-average effect of potentially dilutive shares which include (i) employee equity incentive plans, excluding the impact of unrecognized stock-based compensation expense and (ii) convertible senior notes outstanding and related warrants including the anti-dilutive impact of note hedge and capped call agreements on convertible senior notes outstanding.
There are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Certain items that are excluded from these non-GAAP financial measures can have a material impact on operating and net income (loss). As a result, these non-GAAP financial measures have limitations and should be considered in addition to, not as a substitute for or superior to, the closest GAAP measures, or other financial measures prepared in accordance with GAAP. A reconciliation to the closest GAAP measures of these non-GAAP measures is contained in tabular form on the attached unaudited condensed consolidated financial statements.
Q2’s management uses these non-GAAP measures as measures of operating performance; to prepare Q2’s annual operating budget; to allocate resources to enhance the financial performance of Q2’s business; to evaluate the effectiveness of Q2’s business strategies; to provide consistency and comparability with past financial performance; to facilitate a comparison of Q2’s results with those of other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results; and in communication with our board of directors concerning Q2’s financial performance.
We also monitor the following key operating measures to evaluate growth trends, plan investments and measure the effectiveness of our sales and marketing efforts:
Backlog
Consists of contracted revenue minimums that have not yet been recognized, including amounts that will be invoiced and recognized as revenue in future periods.
Installed Customers
We define Installed Customers as the number of customers on live implementations (or installations) of our digital banking platforms.
Registered Users
We define a Registered User as an individual related to an account holder of an Installed Customer on our consumer digital banking platform who has registered to use one or more of our solutions and has current access to use those solutions as of the last day of the reporting period presented.
Net Revenue Retention Rate
We believe that our ability to retain our customers and expand their use of our products and services over time is an indicator of the stability of our revenue base and the long-term value of our customer relationships. We assess our performance in this area using a metric we refer to as our revenue retention rate. We calculate our revenue retention rate as the total revenues in a calendar year, excluding any revenues from acquired customers during such year, from customers who were implemented on any of our solutions as of
Annualized Recurring Revenue
We believe Annualized Recurring Revenue, or ARR, provides important information about our future revenue potential, our ability to acquire new clients, and our ability to maintain and expand our relationship with existing clients. We calculate ARR as the annualized value of all recurring revenue recognized in the last month of the reporting period, with the exception of variable revenue in excess of contracted amounts for which we instead take the average monthly run rate of the trailing three months within that reporting period. Our ARR also includes the contracted minimums associated with all contracts in place at the end of the quarter that have not yet commenced, and revenue generated from Premier Services. Premier Services revenue is generated from select established customer relationships where we have engaged with the customer for more tailored, premium professional services resulting in a deeper and ongoing level of engagement with them, which we deem to be recurring in nature.
Forward-looking Statements
This press release contains forward-looking statements, including statements about: our momentum with our
Additional information relating to the uncertainty affecting the Q2 business is contained in Q2’s filings with the
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||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands) |
||||||||
(unaudited) |
||||||||
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|
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||||
|
|
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, current portion, net |
|
1,845 |
|
|
1,088 |
|
||
Prepaid expenses and other current assets |
|
10,531 |
|
|
8,861 |
|
||
Deferred solution and other costs, current portion |
|
25,076 |
|
|
19,042 |
|
||
Deferred implementation costs, current portion |
|
7,320 |
|
|
8,258 |
|
||
Total current assets |
|
522,450 |
|
|
616,216 |
|
||
Property and equipment, net |
|
66,608 |
|
|
49,558 |
|
||
Right of use assets |
|
52,278 |
|
|
34,709 |
|
||
Deferred solution and other costs, net of current portion |
|
26,930 |
|
|
32,782 |
|
||
Deferred implementation costs, net of current portion |
|
17,039 |
|
|
15,184 |
|
||
Intangible assets, net |
|
162,461 |
|
|
184,859 |
|
||
|
512,869 |
|
|
462,274 |
|
|||
Contract assets, net of current portion and allowance |
|
22,103 |
|
|
18,694 |
|
||
Other long-term assets |
|
2,307 |
|
|
2,426 |
|
||
Total assets | $ |
1,385,045 |
|
$ |
1,416,702 |
|
||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ |
60,665 |
|
$ |
57,047 |
|
||
Deferred revenues, current portion |
|
98,692 |
|
|
81,935 |
|
||
Lease liabilities, current portion |
|
9,001 |
|
|
6,844 |
|
||
Total current liabilities |
|
168,358 |
|
|
145,826 |
|
||
Convertible notes, net of current portion |
|
551,598 |
|
|
557,468 |
|
||
Deferred revenues, net of current portion |
|
29,168 |
|
|
29,203 |
|
||
Lease liabilities, net of current portion |
|
61,374 |
|
|
36,739 |
|
||
Other long-term liabilities |
|
4,251 |
|
|
4,102 |
|
||
Total liabilities |
|
814,749 |
|
|
773,338 |
|
||
Stockholders' equity: | ||||||||
Common stock |
|
6 |
|
|
6 |
|
||
Additional paid-in capital |
|
1,064,358 |
|
|
1,024,577 |
|
||
Accumulated other comprehensive loss |
|
(135 |
) |
|
(32 |
) |
||
Accumulated deficit |
|
(493,933 |
) |
|
(381,187 |
) |
||
Total stockholders' equity |
|
570,296 |
|
|
643,364 |
|
||
Total liabilities and stockholders' equity | $ |
1,385,045 |
|
$ |
1,416,702 |
|
|
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Condensed Consolidated Statements of Comprehensive Loss |
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(in thousands, except per share data) |
||||||||||||||||
(unaudited) |
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||||||||
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Three Months Ended |
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Twelve Months Ended |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenues (1) | $ |
131,891 |
|
$ |
108,986 |
|
$ |
498,720 |
|
$ |
402,751 |
|
||||
Cost of revenues (2) |
|
72,407 |
|
|
64,476 |
|
|
273,685 |
|
|
228,152 |
|
||||
Gross profit |
|
59,484 |
|
|
44,510 |
|
|
225,035 |
|
|
174,599 |
|
||||
Operating expenses: | ||||||||||||||||
Sales and marketing |
|
22,497 |
|
|
17,726 |
|
|
85,564 |
|
|
72,323 |
|
||||
Research and development |
|
29,965 |
|
|
25,213 |
|
|
116,952 |
|
|
97,381 |
|
||||
General and administrative |
|
20,025 |
|
|
17,061 |
|
|
77,915 |
|
|
70,937 |
|
||||
Acquisition related costs |
|
176 |
|
|
500 |
|
|
2,690 |
|
|
478 |
|
||||
Amortization of acquired intangibles |
|
4,436 |
|
|
4,441 |
|
|
17,901 |
|
|
17,888 |
|
||||
Partnership termination charges |
|
- |
|
|
- |
|
|
- |
|
|
13,244 |
|
||||
Unoccupied lease charges (benefit) (3) |
|
(48 |
) |
|
45 |
|
|
2,008 |
|
|
2,181 |
|
||||
Total operating expenses |
|
77,051 |
|
|
64,986 |
|
|
303,030 |
|
|
274,432 |
|
||||
Loss from operations |
|
(17,567 |
) |
|
(20,476 |
) |
|
(77,995 |
) |
|
(99,833 |
) |
||||
Total other income (expense), net (4) |
|
(7,080 |
) |
|
(16,550 |
) |
|
(33,108 |
) |
|
(36,371 |
) |
||||
Loss before income taxes |
|
(24,647 |
) |
|
(37,026 |
) |
|
(111,103 |
) |
|
(136,204 |
) |
||||
Provision for income taxes |
|
(734 |
) |
|
(795 |
) |
|
(1,643 |
) |
|
(1,416 |
) |
||||
Net loss | $ |
(25,381 |
) |
$ |
(37,821 |
) |
$ |
(112,746 |
) |
$ |
(137,620 |
) |
||||
Other comprehensive loss: | ||||||||||||||||
Unrealized loss on available-for-sale investments |
|
(210 |
) |
|
(52 |
) |
|
(213 |
) |
|
(118 |
) |
||||
Foreign currency translation adjustment |
|
(19 |
) |
|
58 |
|
|
110 |
|
|
72 |
|
||||
Comprehensive loss | $ |
(25,610 |
) |
$ |
(37,815 |
) |
$ |
(112,849 |
) |
$ |
(137,666 |
) |
||||
Net loss per common share: | ||||||||||||||||
Net loss per common share, basic and diluted | $ |
(0.45 |
) |
$ |
(0.69 |
) |
$ |
(2.00 |
) |
$ |
(2.65 |
) |
||||
Weighted average common shares outstanding, basic and diluted |
|
56,846 |
|
|
54,632 |
|
|
56,394 |
|
|
52,019 |
|
(1) |
Includes deferred revenue reduction from purchase accounting of |
|
|
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(2) |
Includes amortization of acquired technology of |
|
|
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(3) |
Unoccupied lease charges include costs related to the early vacating of various facilities, partially offset by anticipated sublease income from these facilities. For the three and twelve months ended |
|
|
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(4) |
Includes a reduction of |
Condensed Consolidated Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Twelve Months Ended |
||||||||
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 deferred implementation, solution and other costs |
|
24,496 |
|
|
22,936 |
|
||
Depreciation and amortization |
|
54,833 |
|
|
51,840 |
|
||
Amortization of debt issuance costs |
|
2,038 |
|
|
1,977 |
|
||
Amortization of debt discount |
|
25,824 |
|
|
21,317 |
|
||
Amortization of premiums on investments |
|
1,117 |
|
|
366 |
|
||
Stock-based compensation expense |
|
55,903 |
|
|
50,682 |
|
||
Deferred income taxes |
|
180 |
|
|
946 |
|
||
Loss on extinguishment of debt |
|
1,513 |
|
|
8,932 |
|
||
Other non-cash charges |
|
2,411 |
|
|
2,626 |
|
||
Changes in operating assets and liabilities |
|
(24,644 |
) |
|
(26,892 |
) |
||
Net cash provided by (used in) operating activities |
|
30,925 |
|
|
(2,890 |
) |
||
Cash flows from investing activities: | ||||||||
Net maturities (purchases) of investments |
|
25,142 |
|
|
(99,496 |
) |
||
Purchases of property and equipment |
|
(19,754 |
) |
|
(23,715 |
) |
||
Business combinations, net of cash acquired |
|
(64,652 |
) |
|
- |
|
||
Capitalized software development costs |
|
(5,865 |
) |
|
(952 |
) |
||
Net cash used in investing activities |
|
(65,129 |
) |
|
(124,163 |
) |
||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common stock, net of issuance costs |
|
- |
|
|
311,321 |
|
||
Proceeds from issuance of convertible notes, net of issuance costs |
|
- |
|
|
132,589 |
|
||
Purchase of capped call transactions |
|
- |
|
|
(39,830 |
) |
||
Payments for repurchases of convertible notes |
|
(63,692 |
) |
|
- |
|
||
Proceeds from bond hedges related to convertible notes |
|
26,295 |
|
|
171,679 |
|
||
Payments for warrants related to convertible notes |
|
(19,655 |
) |
|
(137,538 |
) |
||
Proceeds from exercise of stock options to purchase common stock |
|
5,892 |
|
|
13,317 |
|
||
Payment of contingent consideration |
|
- |
|
|
(16,862 |
) |
||
Net cash provided by (used in) financing activities |
|
(51,160 |
) |
|
434,676 |
|
||
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
(85,364 |
) |
|
307,623 |
|
||
Cash, cash equivalents, and restricted cash, beginning of period |
|
411,185 |
|
|
103,562 |
|
||
Cash, cash equivalents, and restricted cash, end of period | $ |
325,821 |
|
$ |
411,185 |
|
|
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
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(in thousands, except per share data) |
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(unaudited) |
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||||||||
|
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Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
||||||||||||||||
GAAP revenue |
$ |
131,891 |
|
$ |
108,986 |
|
$ |
498,720 |
|
$ |
402,751 |
|
||||
Deferred revenue reduction from purchase accounting |
|
452 |
|
|
684 |
|
|
2,129 |
|
|
4,404 |
|
||||
Non-GAAP revenue |
$ |
132,343 |
|
$ |
109,670 |
|
$ |
500,849 |
|
$ |
407,155 |
|
||||
|
||||||||||||||||
GAAP gross profit |
$ |
59,484 |
|
$ |
44,510 |
|
$ |
225,035 |
|
$ |
174,599 |
|
||||
Stock-based compensation |
|
2,564 |
|
|
2,466 |
|
|
10,590 |
|
|
9,888 |
|
||||
Amortization of acquired technology |
|
5,604 |
|
|
5,157 |
|
|
21,969 |
|
|
21,341 |
|
||||
Acquisition related costs |
|
82 |
|
|
194 |
|
|
409 |
|
|
929 |
|
||||
Deferred revenue reduction from purchase accounting |
|
452 |
|
|
684 |
|
|
2,129 |
|
|
4,404 |
|
||||
Non-GAAP gross profit |
$ |
68,186 |
|
$ |
53,011 |
|
$ |
260,132 |
|
$ |
211,161 |
|
||||
|
||||||||||||||||
Non-GAAP gross margin: |
||||||||||||||||
Non-GAAP gross profit |
$ |
68,186 |
|
$ |
53,011 |
|
$ |
260,132 |
|
$ |
211,161 |
|
||||
Non-GAAP revenue |
|
132,343 |
|
|
109,670 |
|
|
500,849 |
|
|
407,155 |
|
||||
Non-GAAP gross margin |
|
51.5 |
% |
|
48.3 |
% |
|
51.9 |
% |
|
51.9 |
% |
||||
|
||||||||||||||||
GAAP sales and marketing expense |
$ |
22,497 |
|
$ |
17,726 |
|
$ |
85,564 |
|
$ |
72,323 |
|
||||
Stock-based compensation |
|
(2,801 |
) |
|
(2,417 |
) |
|
(11,153 |
) |
|
(8,770 |
) |
||||
Non-GAAP sales and marketing expense |
$ |
19,696 |
|
$ |
15,309 |
|
$ |
74,411 |
|
$ |
63,553 |
|
||||
|
||||||||||||||||
GAAP research and development expense |
$ |
29,965 |
|
$ |
25,213 |
|
$ |
116,952 |
|
$ |
97,381 |
|
||||
Stock-based compensation |
|
(3,234 |
) |
|
(3,089 |
) |
|
(13,273 |
) |
|
(12,869 |
) |
||||
Non-GAAP research and development expense |
$ |
26,731 |
|
$ |
22,124 |
|
$ |
103,679 |
|
$ |
84,512 |
|
||||
|
||||||||||||||||
GAAP general and administrative expense |
$ |
20,025 |
|
$ |
17,061 |
|
$ |
77,915 |
|
$ |
70,937 |
|
||||
Stock-based compensation |
|
(4,944 |
) |
|
(4,348 |
) |
|
(19,318 |
) |
|
(17,708 |
) |
||||
Non-GAAP general and administrative expense |
$ |
15,081 |
|
$ |
12,713 |
|
$ |
58,597 |
|
$ |
53,229 |
|
||||
|
||||||||||||||||
GAAP operating loss |
$ |
(17,567 |
) |
$ |
(20,476 |
) |
$ |
(77,995 |
) |
$ |
(99,833 |
) |
||||
Deferred revenue reduction from purchase accounting |
|
452 |
|
|
684 |
|
|
2,129 |
|
|
4,404 |
|
||||
Partnership termination charges |
|
- |
|
|
- |
|
|
- |
|
|
13,244 |
|
||||
Stock-based compensation |
|
13,543 |
|
|
12,320 |
|
|
54,334 |
|
|
49,235 |
|
||||
Acquisition related costs |
|
258 |
|
|
694 |
|
|
3,099 |
|
|
1,408 |
|
||||
Amortization of acquired technology |
|
5,604 |
|
|
5,157 |
|
|
21,969 |
|
|
21,341 |
|
||||
Amortization of acquired intangibles |
|
4,436 |
|
|
4,441 |
|
|
17,901 |
|
|
17,888 |
|
||||
Unoccupied lease charges (benefit) |
|
(48 |
) |
|
45 |
|
|
2,008 |
|
|
2,181 |
|
||||
Non-GAAP operating income |
$ |
6,678 |
|
$ |
2,865 |
|
$ |
23,445 |
|
$ |
9,868 |
|
||||
|
||||||||||||||||
GAAP net loss |
$ |
(25,381 |
) |
$ |
(37,821 |
) |
$ |
(112,746 |
) |
$ |
(137,620 |
) |
||||
Deferred revenue reduction from purchase accounting |
|
452 |
|
|
684 |
|
|
2,129 |
|
|
4,404 |
|
||||
Partnership termination charges |
|
- |
|
|
- |
|
|
- |
|
|
13,244 |
|
||||
Loss on extinguishment of debt |
|
- |
|
|
8,932 |
|
|
1,513 |
|
|
8,932 |
|
||||
Stock-based compensation |
|
13,543 |
|
|
12,320 |
|
|
54,334 |
|
|
49,235 |
|
||||
Acquisition related costs |
|
258 |
|
|
694 |
|
|
3,099 |
|
|
1,408 |
|
||||
Amortization of acquired technology |
|
5,604 |
|
|
5,157 |
|
|
21,969 |
|
|
21,341 |
|
||||
Amortization of acquired intangibles |
|
4,436 |
|
|
4,441 |
|
|
17,901 |
|
|
17,888 |
|
||||
Unoccupied lease charges (benefit) |
|
(48 |
) |
|
45 |
|
|
2,008 |
|
|
2,181 |
|
||||
Amortization of debt discount and issuance costs |
|
6,914 |
|
|
6,486 |
|
|
27,862 |
|
|
23,294 |
|
||||
Non-GAAP net income |
$ |
5,778 |
|
$ |
938 |
|
$ |
18,069 |
|
$ |
4,307 |
|
||||
|
||||||||||||||||
Reconciliation from diluted weighted-average number of common shares as reported to Non-GAAP diluted weighted-average number of common shares |
||||||||||||||||
Diluted weighted-average number of common shares, as reported |
|
56,846 |
|
|
54,632 |
|
|
56,394 |
|
|
52,019 |
|
||||
Non-GAAP weighted-average effect of potentially dilutive shares |
|
488 |
|
|
3,197 |
|
|
966 |
|
|
2,403 |
|
||||
Non-GAAP diluted weighted-average number of common shares |
|
57,334 |
|
|
57,829 |
|
|
57,360 |
|
|
54,422 |
|
||||
|
||||||||||||||||
Calculation of non-GAAP income per share: |
||||||||||||||||
Non-GAAP net income |
$ |
5,778 |
|
$ |
938 |
|
$ |
18,069 |
|
$ |
4,307 |
|
||||
Non-GAAP diluted weighted-average number of common shares |
|
57,334 |
|
|
57,829 |
|
|
57,360 |
|
|
54,422 |
|
||||
Non-GAAP net income per share |
$ |
0.10 |
|
$ |
0.02 |
|
$ |
0.32 |
|
$ |
0.08 |
|
||||
|
||||||||||||||||
Reconciliation of GAAP net loss to adjusted EBITDA: |
||||||||||||||||
GAAP net loss |
$ |
(25,381 |
) |
$ |
(37,821 |
) |
$ |
(112,746 |
) |
$ |
(137,620 |
) |
||||
Depreciation and amortization |
|
14,253 |
|
|
12,865 |
|
|
54,833 |
|
|
51,840 |
|
||||
Stock-based compensation |
|
13,543 |
|
|
12,320 |
|
|
54,334 |
|
|
49,235 |
|
||||
Provision for income taxes |
|
734 |
|
|
795 |
|
|
1,643 |
|
|
1,416 |
|
||||
Interest and other (income) expense, net |
|
7,007 |
|
|
7,594 |
|
|
31,063 |
|
|
27,180 |
|
||||
Acquisition related costs |
|
258 |
|
|
694 |
|
|
3,099 |
|
|
1,408 |
|
||||
Unoccupied lease charges (benefit) |
|
(48 |
) |
|
45 |
|
|
2,008 |
|
|
2,181 |
|
||||
Loss on extinguishment of debt |
|
- |
|
|
8,932 |
|
|
1,513 |
|
|
8,932 |
|
||||
Deferred revenue reduction from purchase accounting |
|
452 |
|
|
684 |
|
|
2,129 |
|
|
4,404 |
|
||||
Partnership termination charges |
|
- |
|
|
- |
|
|
- |
|
|
13,244 |
|
||||
Adjusted EBITDA |
$ |
10,818 |
|
$ |
6,108 |
|
$ |
37,876 |
|
$ |
22,220 |
|
|
||||||||||||
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 |
$ |
576,000 |
$ |
581,000 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220215005983/en/
MEDIA CONTACT:
M: +1-510-823-4728
jean.kondo@Q2.com
INVESTOR CONTACT:
O: +1-512-682-4463
josh.yankovich@Q2.com
Source:
FAQ
What were Q2 Holdings' revenue results for the fourth quarter of 2021?
How did Q2 Holdings perform financially in 2021?
What is Q2 Holdings' gross margin for the fourth quarter of 2021?
What is Q2 Holdings' outlook for 2022?