Hosting

Q2 Holdings, Inc. Declares Fourth Quarter and Full-Yr 2021 Monetary Outcomes

AUSTIN, Texas–(BUSINESS WIRE)–Q2 Holdings, Inc. (NYSE:QTWO), a number one supplier of digital transformation options for banking and lending, immediately introduced outcomes for its fourth quarter and full 12 months ending December 31, 2021.

GAAP Outcomes for the Fourth Quarter and Full-Yr 2021

  • Income for the fourth quarter of $131.9 million, up 21 p.c year-over-year and up 4 p.c from the third quarter of 2021. Full-year 2021 income of $498.7 million, up 24 p.c year-over-year.
  • GAAP gross margin for the fourth quarter of 45.1 p.c, up from 40.8 p.c for the prior-year quarter and 45.0 p.c for the third quarter of 2021. GAAP gross margin for full-year 2021 of 45.1 p.c, up from 43.4 p.c for the full-year 2020.
  • GAAP web loss for the fourth quarter of $25.4 million, in comparison with GAAP web losses of $37.8 million for the prior-year quarter and $31.6 million for the third quarter of 2021. GAAP web loss for full-year 2021 of $112.7 million, in comparison with $137.6 million for full-year 2020.

Non-GAAP Outcomes for the Fourth Quarter and Full-Yr 2021

  • Non-GAAP income for the fourth quarter of $132.3 million, up 21 p.c year-over-year and up 4 p.c from the third quarter of 2021. Full-year 2021 non-GAAP income of $500.8 million, up 23 p.c year-over-year.
  • Non-GAAP gross margin for the fourth quarter of 51.5 p.c, up from 48.3 p.c for the prior-year quarter and down from 51.9 p.c for the third quarter of 2021. Non-GAAP gross margin for full-year 2021 of 51.9 p.c, according to 51.9 p.c for full-year 2020.
  • Adjusted EBITDA for the fourth quarter of $10.8 million, up from $6.1 million for the prior-year quarter and $7.3 million for the third quarter of 2021. Full-year 2021 adjusted EBITDA of $37.9 million up from $22.2 million for the full-year 2020.

For a reconciliation of our GAAP to non-GAAP outcomes, please see the tables under.

“We exited 2021 with sturdy outcomes, delivering each the second largest bookings quarter and greatest half-year of bookings efficiency in firm historical past,” mentioned Q2 CEO Matt Flake. “I used to be notably happy with the broad gross sales power, highlighted by quite a few Tier 1 and Enterprise offers throughout each digital banking and lending. Q2 Innovation Studio and Q2 Banking-as-a-Service—now referred to as Helix—continued to achieve traction, including new companions and lengthening key shoppers. Whereas we’re persevering with to observe the macro-economic backdrop for our clients within the close to time period, we’re more and more seeing monetary establishments, fintechs, and modern manufacturers accelerating their investments in monetary companies expertise. With our broad resolution portfolio and constructive momentum exiting 2021, I imagine we’re uniquely poised to capitalize on that chance in 2022 and past.”

Fourth Quarter Highlights

Gross sales Success Throughout the Enterprise

  • Signed three Tier 1 digital banking contracts, together with a:

    • Tier 1, Prime 100 U.S. financial institution to make the most of our retail & small enterprise options;
    • Tier 1 financial institution to make the most of our full digital banking suite together with retail, small enterprise and company digital banking options; and
    • Tier 1 credit score union to make the most of our company digital banking options.
  • Signed 5 enterprise and two Tier 1 digital lending contracts to make the most of our mortgage pricing options, together with a(n):

    • Enterprise, Prime 5 Canadian financial institution which signed separate offers in each Canada and the U.S.;
    • Enterprise, Prime 5 U.S. financial institution;
    • Enterprise, Prime 10 U.S. financial institution to increase the strains of enterprise which make the most of our mortgage pricing options;
    • Enterprise, Prime 25 U.S. financial institution;
    • Tier 1, Prime 100 U.S. financial institution to undertake the total mortgage pricing resolution suite; and
    • Tier 1, monetary establishment within the U.S.
  • Signed two Tier 1 digital lending contracts to make the most of our treasury onboarding resolution.
  • Signed multi-year renewals with three of our high 5 Helix clients.
  • Signed one enterprise and 4 Tier 1 digital banking contracts to make the most of our ClickSWITCH options.

Robust Yr-Finish Outcomes on account of Gross sales and Operational Execution

  • Annualized Recurring Income elevated to $574.2 million, up 24% year-over-year from $464.2 million on the finish of 2020.
  • Our Remaining Efficiency Obligation complete, or Backlog, elevated by $121.7 million sequentially leading to complete dedicated Backlog of over $1.4 billion, representing 10% year-over-year development and 9% sequential development.
  • Our trailing twelve-month web income retention charge was 119%, down barely from 122% within the prior 12 months.

    • 122% retention charge in 2020 included contribution from the acquisition of PrecisionLender within the fourth quarter of 2019.
  • Our annual income churn was 5.4%, down from 5.9% within the prior 12 months.
  • Exited the fourth quarter with roughly 19.2 million registered customers on the Q2 digital banking platform, representing 8% year-over-year development and according to the earlier quarter.

“We have been happy with our monetary efficiency for the quarter with income outcomes close to the high-end of our steering and EBITDA properly exceeding our steering,” mentioned David Mehok, Q2 CFO. “Money circulate from operations for the fourth quarter was $39.3 million, our greatest quarter on file, as we completed with money, money equivalents, and investments of $427.7 million. We imagine our continued operational effectivity and persevering with gross sales success will additional place us properly to capitalize on our long-term market alternative.”

Monetary outlook

As of February 15, 2022, Q2 Holdings is offering steering for its first quarter of 2022 and full-year 2022, which represents Q2 Holdings’ present estimates on Q2 Holdings’ operations and monetary outcomes and the anticipated impacts of the COVID-19 pandemic. The monetary data under represents forward-looking, non-GAAP monetary data, together with estimates of non-GAAP income and adjusted EBITDA. GAAP web loss is probably the most comparable GAAP measure to adjusted EBITDA. Adjusted EBITDA differs from GAAP web loss in that it excludes objects comparable to depreciation and amortization, stock-based compensation, acquisition-related prices, curiosity and different (revenue) expense, revenue taxes, unoccupied lease fees, partnership termination fees, loss on extinguishment of debt and the influence to deferred income from buy accounting. Q2 Holdings is unable to foretell with cheap certainty the last word final result of those exclusions with out unreasonable effort. Due to this fact, Q2 Holdings has not offered steering for GAAP web loss or a reconciliation of the foregoing forward-looking adjusted EBITDA steering to GAAP web loss. Nonetheless, it is very important observe that these excluded objects could possibly be materials to our outcomes computed in accordance with GAAP in future intervals.

Q2 Holdings is offering steering for its first quarter of 2022 as follows:

  • Complete non-GAAP income of $131.5 million to $133.0 million, which might symbolize year-over-year development of 12 to 14 p.c.
  • Adjusted EBITDA of $7.7 million to $8.7 million, representing 6 to 7 p.c of non-GAAP income for the quarter.

Q2 Holdings is offering steering for the full-year 2022 as follows:

  • Complete non-GAAP income of $576.0 million to $581.0 million, which might symbolize year-over-year development of 15 p.c to 16 p.c.
  • Adjusted EBITDA of $40.9 million to $43.9 million, representing 7 to eight p.c of non-GAAP income for the 12 months.

Convention Name Particulars

All contributors should register utilizing both above hyperlink (webcast or convention name). A webcast of the convention name, monetary outcomes and related supplies might be accessible from the investor relations part of the Q2 web site at http://traders.Q2.com/. As well as, a reside convention name dial-in might be accessible upon registration. Contributors ought to dial in at the least 10 minutes earlier than the beginning of the convention. An archived replay of the webcast might be accessible on this web site for a restricted time after the decision. Q2 has used, and intends to proceed to make use of, its investor relations web site as a method of exposing materials private data and for complying with its disclosure obligations beneath Regulation FD.

About Q2 Holdings, Inc.

Q2 is a monetary expertise firm devoted to offering digital banking and lending options to banks, credit score unions, various finance, and fintech corporations within the U.S. and internationally. With complete end-to-end resolution units, Q2 allows its companions to supply cohesive, safe, data-driven experiences to each account holder – from shopper to small enterprise and company. Headquartered in Austin, Texas, Q2 has workplaces all through the world and is publicly traded on the NYSE beneath the inventory image QTWO. To study extra, please go to Q2.com.

Use of Non-GAAP Measures and Key Working Measures

Q2 makes use of the next non-GAAP monetary measures: non-GAAP income; adjusted EBITDA; non-GAAP gross margin; non-GAAP gross revenue; non-GAAP gross sales and advertising expense; non-GAAP analysis and improvement expense; non-GAAP common and administrative expense; non-GAAP working expense; non-GAAP working revenue (loss); non-GAAP web revenue; non-GAAP web revenue per share; and non-GAAP diluted weighted-average variety of widespread shares excellent. Administration believes that these non-GAAP monetary measures are helpful measures of working efficiency as a result of they exclude objects that Q2 doesn’t think about indicative of its core efficiency.

Within the case of non-GAAP income, Q2 adjusts income to exclude the influence to deferred income from buy accounting changes. Within the case of adjusted EBITDA, Q2 adjusts web loss for such objects as curiosity and different (revenue) expense, taxes, depreciation and amortization, stock-based compensation, acquisition-related prices, unoccupied lease fees, partnership termination fees and the influence to deferred income from buy accounting. Within the case of non-GAAP gross margin and non-GAAP gross revenue, Q2 adjusts gross revenue and gross margin for stock-based compensation amortization of acquired expertise, acquisition-related prices, and the influence to deferred income from buy accounting. Within the case of non-GAAP gross sales and advertising expense, non-GAAP analysis and improvement expense, and non-GAAP common and administrative expense, Q2 adjusts the corresponding GAAP expense to exclude stock-based compensation. Non-GAAP Working Expense is calculated by taking the sum of non-GAAP gross sales and advertising bills, non-GAAP analysis and improvement expense, and non-GAAP common and administrative expense. Within the case of non-GAAP working revenue (loss), non-GAAP web revenue (loss), and non-GAAP web revenue (loss) per share, Q2 adjusts working loss and web loss, respectively, for stock-based compensation, acquisition-related prices, amortization of acquired expertise, amortization of acquired intangibles, unoccupied lease fees, partnership termination fees, loss on extinguishment of debt and the influence to deferred income from buy accounting, and with respect to non-GAAP web revenue, amortization of debt low cost and issuance prices and loss on extinguishment of debt. Within the case of non-GAAP diluted weighted-average variety of widespread shares excellent, Q2 adjusts diluted weighted-average variety of widespread shares excellent by the weighted-average impact of doubtless dilutive shares which embody (i) worker fairness incentive plans, excluding the influence of unrecognized stock-based compensation expense and (ii) convertible senior notes excellent and associated warrants together with the anti-dilutive influence of observe hedge and capped name agreements on convertible senior notes excellent.

There are limitations related to using these non-GAAP monetary measures. These non-GAAP monetary measures are usually not ready in accordance with GAAP, don’t mirror a complete system of accounting and might not be utterly similar to equally titled measures of different corporations on account of potential variations within the precise technique of calculation between corporations. Sure objects which might be excluded from these non-GAAP monetary measures can have a fabric influence on working and web revenue (loss). Because of this, these non-GAAP monetary measures have limitations and must be thought of along with, not as an alternative to or superior to, the closest GAAP measures, or different monetary measures ready in accordance with GAAP. A reconciliation to the closest GAAP measures of those non-GAAP measures is contained in tabular kind on the connected unaudited condensed consolidated monetary statements.

Q2’s administration makes use of these non-GAAP measures as measures of working efficiency; to arrange Q2’s annual working funds; to allocate assets to boost the monetary efficiency of Q2’s enterprise; to judge the effectiveness of Q2’s enterprise methods; to supply consistency and comparability with previous monetary efficiency; to facilitate a comparability of Q2’s outcomes with these of different corporations, lots of which use related non-GAAP monetary measures to complement their GAAP outcomes; and in communication with our board of administrators regarding Q2’s monetary efficiency.

We additionally monitor the next key working measures to judge development developments, plan investments and measure the effectiveness of our gross sales and advertising efforts:

Backlog

Consists of contracted income minimums that haven’t but been acknowledged, together with quantities that might be invoiced and acknowledged as income in future intervals.

Put in Prospects

We outline Put in Prospects because the variety of clients on reside implementations (or installations) of our digital banking platforms.

Registered Customers

We outline a Registered Consumer as a person associated to an account holder of an Put in Buyer on our shopper digital banking platform who has registered to make use of a number of of our options and has present entry to make use of these options as of the final day of the reporting interval introduced.

Internet Income Retention Fee

We imagine that our skill to retain our clients and increase their use of our services over time is an indicator of the steadiness of our income base and the long-term worth of our buyer relationships. We assess our efficiency on this space utilizing a metric we consult with as our income retention charge. We calculate our income retention charge as the overall revenues in a calendar 12 months, excluding any revenues from acquired clients throughout such 12 months, from clients who have been carried out on any of our options as of December 31 of the prior 12 months, expressed as a proportion of the overall revenues throughout the prior 12 months from the identical group of shoppers.

Annualized Recurring Income

We imagine Annualized Recurring Income, or ARR, offers vital details about our future income potential, our skill to accumulate new shoppers, and our skill to take care of and increase our relationship with current shoppers. We calculate ARR because the annualized worth of all recurring income acknowledged within the final month of the reporting interval, except for variable income in extra of contracted quantities for which we as a substitute take the typical month-to-month run charge of the trailing three months inside that reporting interval. Our ARR additionally contains the contracted minimums related to all contracts in place on the finish of the quarter that haven’t but commenced, and income generated from Premier Companies. Premier Companies income is generated from choose established buyer relationships the place we’ve engaged with the shopper for extra tailor-made, premium skilled companies leading to a deeper and ongoing stage of engagement with them, which we deem to be recurring in nature.

Ahead-looking Statements

This press launch incorporates forward-looking statements, together with statements about: our momentum with our Q2 Innovation Studio and Helix options, and Q2’s skill so as to add new companions and lengthen key shoppers; the impacts of the macro-economic backdrop for Q2’s clients; accelerated investments by monetary establishments, fintechs, and modern manufacturers in monetary companies expertise; Q2’s momentum exiting 2021; the advantages of Q2’s broad resolution portfolio, operational effectivity and bettering gross sales efficiency; Q2’s place to capitalize on its long-term market alternative; and, Q2’s quarterly and annual monetary steering. The forward-looking statements contained on this press launch are based mostly upon Q2’s historic efficiency and its present plans, estimates, and expectations and are usually not a illustration that such plans, estimates or expectations might be achieved. Components that would trigger precise outcomes to vary materially from these described herein embody the opposed impacts of the COVID-19 pandemic on Q2’s enterprise operations and on international financial and monetary markets, together with on Q2’s clients, companions and suppliers and workers and enterprise, in addition to dangers associated to: (a) the chance of elevated competitors in its current markets and because it enters new sections of the market with Tier 1 clients, new markets with Alt-FIs and fintechs and new services; (b) the chance that COVID-19, authorities actions or different elements proceed to negatively influence or disrupt the markets for Q2’s options and that the markets for Q2’s options don’t return to regular or develop as anticipated, particularly with respect to Enterprise and Tier 1 clients and Alt-FI and fintech clients; (c) the chance that Q2’s elevated concentrate on promoting to bigger Enterprise or Tier 1 clients could lead to higher uncertainty and variability in Q2’s enterprise and gross sales outcomes; (d) the chance that adjustments in Q2’s market, enterprise or gross sales group negatively influence its skill to promote its services; (e) the challenges and prices related to promoting, implementing and supporting Q2’s options, notably for bigger clients with extra advanced necessities and longer implementation processes, together with dangers associated to the timing and predictability of gross sales of Q2’s options and the influence that the timing of bookings could have on Q2’s income and monetary efficiency in a interval; (f) the chance that errors, interruptions or delays in Q2’s services or products or Website hosting negatively impacts Q2’s enterprise and gross sales; (g) dangers related to cyberattacks, information and privateness breaches and breaches of safety measures inside Q2’s merchandise, techniques and infrastructure or the merchandise, techniques and infrastructure of third events upon which Q2 depends and the resultant prices and liabilities and hurt to Q2’s enterprise and fame and its skill to promote its services; (h) the influence {that a} slowdown within the financial system, monetary markets and credit score markets could have on Q2’s clients and Q2’s enterprise gross sales cycles, prospects and clients’ spending choices and timing of implementation choices, notably in areas the place a major variety of Q2’s clients are concentrated; (i) the difficulties and dangers related to growing and promoting advanced new options and enhancements with the technical and regulatory specs and performance required by clients and governmental authorities; (j) the dangers inherent in expertise and implementation partnerships that would trigger hurt to Q2’s enterprise; (ok) the difficulties and prices Q2 could encounter with advanced implementations of its options and the ensuing influence on fame and the timing of its income from any delayed implementations; (l) the chance that Q2 won’t be able to take care of historic contract phrases comparable to pricing and length; (m) the dangers and elevated prices related to managing development and the challenges related to bettering operations and hiring, retaining and motivating workers to assist such development, notably in gentle of the macroeconomic impacts of the COVID-19 pandemic, together with elevated worker turnover, labor shortages, wage inflation and excessive competitors for expertise; (n) the chance that modifications or negotiations of contractual preparations might be obligatory throughout Q2’s implementations of its options or the overall dangers related to the complexity of Q2’s buyer preparations; (o) the dangers related to integrating acquired corporations and efficiently promoting and sustaining their options; (p) the dangers related to anticipated increased working bills in 2022 and past; (q) litigation associated to mental property and different issues and any associated claims, negotiations and settlements; (r) the dangers related to additional consolidation within the monetary companies business; (s) dangers related to promoting Q2 options internationally; and (t) the chance that Q2 debt reimbursement obligations could adversely have an effect on its monetary situation and money flows from operations sooner or later and that Q2 could not be capable of get hold of capital when desired or wanted on favorable phrases.

Further data regarding the uncertainty affecting the Q2 enterprise is contained in Q2’s filings with the Securities and Alternate Fee. These paperwork can be found on the SEC Filings part of the Investor Relations part of Q2’s web site at http://traders.Q2.com/. These forward-looking statements symbolize Q2’s expectations as of the date of this press launch. Subsequent occasions could trigger these expectations to vary, and Q2 disclaims any obligations to replace or alter these forward-looking statements sooner or later, whether or not because of new data, future occasions or in any other case.

Q2 Holdings, Inc.

Condensed Consolidated Stability Sheets

(in 1000’s)

(unaudited)

 

 

December 31,

 

December 31,

 

 

2021

 

2020

Belongings
Present property:
Money and money equivalents

$

322,848

 

$

407,703

 

Restricted money

 

2,973

 

 

3,482

 

Investments

 

104,878

 

 

131,352

 

Accounts receivable, web

 

46,979

 

 

36,430

 

Contract property, present portion, web

 

1,845

 

 

1,088

 

Pay as you go bills and different present property

 

10,531

 

 

8,861

 

Deferred resolution and different prices, present portion

 

25,076

 

 

19,042

 

Deferred implementation prices, present portion

 

7,320

 

 

8,258

 

Complete present property

 

522,450

 

 

616,216

 

Property and tools, web

 

66,608

 

 

49,558

 

Proper of use property

 

52,278

 

 

34,709

 

Deferred resolution and different prices, web of present portion

 

26,930

 

 

32,782

 

Deferred implementation prices, web of present portion

 

17,039

 

 

15,184

 

Intangible property, web

 

162,461

 

 

184,859

 

Goodwill

 

512,869

 

 

462,274

 

Contract property, web of present portion and allowance

 

22,103

 

 

18,694

 

Different long-term property

 

2,307

 

 

2,426

 

Complete property

$

1,385,045

 

$

1,416,702

 

 
Liabilities and stockholders’ fairness
Present liabilities:
Accounts payable and accrued liabilities

$

60,665

 

$

57,047

 

Deferred revenues, present portion

 

98,692

 

 

81,935

 

Lease liabilities, present portion

 

9,001

 

 

6,844

 

Complete present liabilities

 

168,358

 

 

145,826

 

Convertible notes, web of present portion

 

551,598

 

 

557,468

 

Deferred revenues, web of present portion

 

29,168

 

 

29,203

 

Lease liabilities, web of present portion

 

61,374

 

 

36,739

 

Different long-term liabilities

 

4,251

 

 

4,102

 

Complete liabilities

 

814,749

 

 

773,338

 

 
Stockholders’ fairness:
Widespread inventory

 

6

 

 

6

 

Further paid-in capital

 

1,064,358

 

 

1,024,577

 

Amassed different complete loss

 

(135

)

 

(32

)

Amassed deficit

 

(493,933

)

 

(381,187

)

Complete stockholders’ fairness

 

570,296

 

 

643,364

 

Complete liabilities and stockholders’ fairness

$

1,385,045

 

$

1,416,702

 

Q2 Holdings, Inc.

Condensed Consolidated Statements of Complete Loss

(in 1000’s, besides per share information)

(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

 

Price of revenues (2)

 

72,407

 

 

64,476

 

 

273,685

 

 

228,152

 

Gross revenue

 

59,484

 

 

44,510

 

 

225,035

 

 

174,599

 

 
Working bills:
Gross sales and advertising

 

22,497

 

 

17,726

 

 

85,564

 

 

72,323

 

Analysis and improvement

 

29,965

 

 

25,213

 

 

116,952

 

 

97,381

 

Normal and administrative

 

20,025

 

 

17,061

 

 

77,915

 

 

70,937

 

Acquisition associated prices

 

176

 

 

500

 

 

2,690

 

 

478

 

Amortization of acquired intangibles

 

4,436

 

 

4,441

 

 

17,901

 

 

17,888

 

Partnership termination fees

 

 

 

 

 

 

 

13,244

 

Unoccupied lease fees (profit) (3)

 

(48

)

 

45

 

 

2,008

 

 

2,181

 

Complete working bills

 

77,051

 

 

64,986

 

 

303,030

 

 

274,432

 

Loss from operations

 

(17,567

)

 

(20,476

)

 

(77,995

)

 

(99,833

)

Complete different revenue (expense), web (4)

 

(7,080

)

 

(16,550

)

 

(33,108

)

 

(36,371

)

Loss earlier than revenue taxes

 

(24,647

)

 

(37,026

)

 

(111,103

)

 

(136,204

)

Provision for revenue taxes

 

(734

)

 

(795

)

 

(1,643

)

 

(1,416

)

Internet loss

$

(25,381

)

$

(37,821

)

$

(112,746

)

$

(137,620

)

Different complete loss:
Unrealized loss on available-for-sale investments

 

(210

)

 

(52

)

 

(213

)

 

(118

)

Overseas foreign money translation adjustment

 

(19

)

 

58

 

 

110

 

 

72

 

Complete loss

$

(25,610

)

$

(37,815

)

$

(112,849

)

$

(137,666

)

Internet loss per widespread share:
Internet loss per widespread share, fundamental and diluted

$

(0.45

)

$

(0.69

)

$

(2.00

)

$

(2.65

)

Weighted common widespread shares excellent, fundamental and diluted

 

56,846

 

 

54,632

 

 

56,394

 

 

52,019

 

(1)

Contains deferred income discount from buy accounting of $0.5 million and $0.7 million for the three months ended December 31, 2021 and 2020, respectively, and $2.1 million and $4.4 million for the twelve months ended December 31, 2021 and 2020, respectively.

 

(2)

Contains amortization of acquired expertise of $5.6 million and $5.2 million for the three months ended December 31, 2021 and 2020, respectively, and $22.0 million and $21.3 million for the twelve months ended December 31, 2021 and 2020, respectively.

 

(3)

Unoccupied lease fees embody prices associated to the early vacating of assorted services, partially offset by anticipated sublease revenue from these services. For the three and twelve months ended December 31, 2021, the fees associated to an up to date evaluation and vacating of services in Georgia, Texas, North Carolina and Nebraska, and for the three and twelve months ended December 31, 2020, the fees associated to the vacating of services in California, North Carolina, and Texas.

 

(4)

Features a discount of $1.5 million and $8.9 million associated to the early extinguishment of a portion of our 2023 Notes for the twelve months ended December 31, 2021 and the three and twelve months ended December 31, 2020, respectively.
Q2 Holdings, Inc.
Condensed Consolidated Statements of Money Flows
(in 1000’s)
(unaudited)

Twelve Months Ended December 31,

2021

 

2020

Money flows from working actions:
Internet loss

$

(112,746

)

$

(137,620

)

Changes to reconcile web loss to web money from working actions:
Amortization of deferred implementation, resolution and different prices

 

24,496

 

 

22,936

 

Depreciation and amortization

 

54,833

 

 

51,840

 

Amortization of debt issuance prices

 

2,038

 

 

1,977

 

Amortization of debt low cost

 

25,824

 

 

21,317

 

Amortization of premiums on investments

 

1,117

 

 

366

 

Inventory-based compensation expense

 

55,903

 

 

50,682

 

Deferred revenue taxes

 

180

 

 

946

 

Loss on extinguishment of debt

 

1,513

 

 

8,932

 

Different non-cash fees

 

2,411

 

 

2,626

 

Adjustments in working property and liabilities

 

(24,644

)

 

(26,892

)

Internet money offered by (utilized in) working actions

 

30,925

 

 

(2,890

)

Money flows from investing actions:
Internet maturities (purchases) of investments

 

25,142

 

 

(99,496

)

Purchases of property and tools

 

(19,754

)

 

(23,715

)

Enterprise mixtures, web of money acquired

 

(64,652

)

 

 

Capitalized software program improvement prices

 

(5,865

)

 

(952

)

Internet money utilized in investing actions

 

(65,129

)

 

(124,163

)

Money flows from financing actions:
Proceeds from issuance of widespread inventory, web of issuance prices

 

 

 

311,321

 

Proceeds from issuance of convertible notes, web of issuance prices

 

 

 

132,589

 

Buy of capped name transactions

 

 

 

(39,830

)

Funds for repurchases of convertible notes

 

(63,692

)

 

 

Proceeds from bond hedges associated to convertible notes

 

26,295

 

 

171,679

 

Funds for warrants associated to convertible notes

 

(19,655

)

 

(137,538

)

Proceeds from train of inventory choices to buy widespread inventory

 

5,892

 

 

13,317

 

Cost of contingent consideration

 

 

 

(16,862

)

Internet money offered by (utilized in) financing actions

 

(51,160

)

 

434,676

 

Internet improve (lower) in money, money equivalents, and restricted money

 

(85,364

)

 

307,623

 

Money, money equivalents, and restricted money, starting of interval

 

411,185

 

 

103,562

 

Money, money equivalents, and restricted money, finish of interval

$

325,821

 

$

411,185

 

Q2 Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(in 1000’s, besides per share information)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

 

2021

 

2020

 

2021

 

2020

 

GAAP income

$

131,891

 

$

108,986

 

$

498,720

 

$

402,751

 

Deferred income discount from buy accounting

 

452

 

 

684

 

 

2,129

 

 

4,404

 

Non-GAAP income

$

132,343

 

$

109,670

 

$

500,849

 

$

407,155

 

 

GAAP gross revenue

$

59,484

 

$

44,510

 

$

225,035

 

$

174,599

 

Inventory-based compensation

 

2,564

 

 

2,466

 

 

10,590

 

 

9,888

 

Amortization of acquired expertise

 

5,604

 

 

5,157

 

 

21,969

 

 

21,341

 

Acquisition associated prices

 

82

 

 

194

 

 

409

 

 

929

 

Deferred income discount from buy accounting

 

452

 

 

684

 

 

2,129

 

 

4,404

 

Non-GAAP gross revenue

$

68,186

 

$

53,011

 

$

260,132

 

$

211,161

 

 

Non-GAAP gross margin:

Non-GAAP gross revenue

$

68,186

 

$

53,011

 

$

260,132

 

$

211,161

 

Non-GAAP income

 

132,343

 

 

109,670

 

 

500,849

 

 

407,155

 

Non-GAAP gross margin

 

51.5

%

 

48.3

%

 

51.9

%

 

51.9

%

 

GAAP gross sales and advertising expense

$

22,497

 

$

17,726

 

$

85,564

 

$

72,323

 

Inventory-based compensation

 

(2,801

)

 

(2,417

)

 

(11,153

)

 

(8,770

)

Non-GAAP gross sales and advertising expense

$

19,696

 

$

15,309

 

$

74,411

 

$

63,553

 

 

GAAP analysis and improvement expense

$

29,965

 

$

25,213

 

$

116,952

 

$

97,381

 

Inventory-based compensation

 

(3,234

)

 

(3,089

)

 

(13,273

)

 

(12,869

)

Non-GAAP analysis and improvement expense

$

26,731

 

$

22,124

 

$

103,679

 

$

84,512

 

 

GAAP common and administrative expense

$

20,025

 

$

17,061

 

$

77,915

 

$

70,937

 

Inventory-based compensation

 

(4,944

)

 

(4,348

)

 

(19,318

)

 

(17,708

)

Non-GAAP common and administrative expense

$

15,081

 

$

12,713

 

$

58,597

 

$

53,229

 

 

GAAP working loss

$

(17,567

)

$

(20,476

)

$

(77,995

)

$

(99,833

)

Deferred income discount from buy accounting

 

452

 

 

684

 

 

2,129

 

 

4,404

 

Partnership termination fees

 

 

 

 

 

 

 

13,244

 

Inventory-based compensation

 

13,543

 

 

12,320

 

 

54,334

 

 

49,235

 

Acquisition associated prices

 

258

 

 

694

 

 

3,099

 

 

1,408

 

Amortization of acquired expertise

 

5,604

 

 

5,157

 

 

21,969

 

 

21,341

 

Amortization of acquired intangibles

 

4,436

 

 

4,441

 

 

17,901

 

 

17,888

 

Unoccupied lease fees (profit)

 

(48

)

 

45

 

 

2,008

 

 

2,181

 

Non-GAAP working revenue

$

6,678

 

$

2,865

 

$

23,445

 

$

9,868

 

 

GAAP web loss

$

(25,381

)

$

(37,821

)

$

(112,746

)

$

(137,620

)

Deferred income discount from buy accounting

 

452

 

 

684

 

 

2,129

 

 

4,404

 

Partnership termination fees

 

 

 

 

 

 

 

13,244

 

Loss on extinguishment of debt

 

 

 

8,932

 

 

1,513

 

 

8,932

 

Inventory-based compensation

 

13,543

 

 

12,320

 

 

54,334

 

 

49,235

 

Acquisition associated prices

 

258

 

 

694

 

 

3,099

 

 

1,408

 

Amortization of acquired expertise

 

5,604

 

 

5,157

 

 

21,969

 

 

21,341

 

Amortization of acquired intangibles

 

4,436

 

 

4,441

 

 

17,901

 

 

17,888

 

Unoccupied lease fees (profit)

 

(48

)

 

45

 

 

2,008

 

 

2,181

 

Amortization of debt low cost and issuance prices

 

6,914

 

 

6,486

 

 

27,862

 

 

23,294

 

Non-GAAP web revenue

$

5,778

 

$

938

 

$

18,069

 

$

4,307

 

 

Reconciliation from diluted weighted-average variety of widespread shares as reported to Non-GAAP diluted weighted-average variety of widespread shares

Diluted weighted-average variety of widespread shares, as reported

 

56,846

 

 

54,632

 

 

56,394

 

 

52,019

 

Non-GAAP weighted-average impact of doubtless dilutive shares

 

488

 

 

3,197

 

 

966

 

 

2,403

 

Non-GAAP diluted weighted-average variety of widespread shares

 

57,334

 

 

57,829

 

 

57,360

 

 

54,422

 

 

Calculation of non-GAAP revenue per share:

Non-GAAP web revenue

$

5,778

 

$

938

 

$

18,069

 

$

4,307

 

Non-GAAP diluted weighted-average variety of widespread shares

 

57,334

 

 

57,829

 

 

57,360

 

 

54,422

 

Non-GAAP web revenue per share

$

0.10

 

$

0.02

 

$

0.32

 

$

0.08

 

 

Reconciliation of GAAP web loss to adjusted EBITDA:

GAAP web loss

$

(25,381

)

$

(37,821

)

$

(112,746

)

$

(137,620

)

Depreciation and amortization

 

14,253

 

 

12,865

 

 

54,833

 

 

51,840

 

Inventory-based compensation

 

13,543

 

 

12,320

 

 

54,334

 

 

49,235

 

Provision for revenue taxes

 

734

 

 

795

 

 

1,643

 

 

1,416

 

Curiosity and different (revenue) expense, web

 

7,007

 

 

7,594

 

 

31,063

 

 

27,180

 

Acquisition associated prices

 

258

 

 

694

 

 

3,099

 

 

1,408

 

Unoccupied lease fees (profit)

 

(48

)

 

45

 

 

2,008

 

 

2,181

 

Loss on extinguishment of debt

 

 

 

8,932

 

 

1,513

 

 

8,932

 

Deferred income discount from buy accounting

 

452

 

 

684

 

 

2,129

 

 

4,404

 

Partnership termination fees

 

 

 

 

 

 

 

13,244

 

Adjusted EBITDA

$

10,818

 

$

6,108

 

$

37,876

 

$

22,220

 

Q2 Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Income Outlook

(in 1000’s)

 

 

 

 

 

 

 

 

 

 

 

Q1 2022 Outlook

 

Full Yr 2022 Outlook

 

 

Low

 

Excessive

 

Low

 

Excessive

 
GAAP income

$

131,258

$

132,758

$

575,320

$

580,320

Deferred income discount from buy accounting

 

242

 

242

 

680

 

680

Non-GAAP income

$

131,500

$

133,000

$

576,000

$

581,000

 

Related Articles

Back to top button