Q2 Holdings
Q2 Holdings, Inc. provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. The last earnings update was 29 days ago. More info.
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- Q2 Holdings has significant price volatility in the past 3 months.
QTWO Share Price and Events
7 Day Returns
1 Year Returns
QTWO Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Q2 Holdings (QTWO) | 1.8% | 4% | 50.7% | 44.4% | 208.3% | 363% |
| US Software | 2.5% | 5.1% | 18.3% | 24.3% | 108.3% | 136.1% |
| US Market | 1.6% | 2.1% | 12.8% | 3.2% | 38.6% | 43.6% |
1 Year Return vs Industry and Market
- QTWO outperformed the Software industry which returned 24.3% over the past year.
- QTWO outperformed the Market in United States of America which returned 3.2% over the past year.
QTWO Value
Is Q2 Holdings undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Q2 Holdings
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Q2 Holdings.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 16 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Software Unlevered Beta | Simply Wall St/ S&P Global | 1.14 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.139 (1 + (1- 21%) (6.04%)) |
1.13 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.13 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.13 * 5.96%) |
9.46% |
Discounted Cash Flow Calculation for NYSE:QTWO using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Q2 Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.46%) |
|
|---|---|---|---|
| 2019 | -1.30 | Analyst x7 | -1.18 |
| 2020 | 19.15 | Analyst x6 | 15.98 |
| 2021 | 22.98 | Analyst x2 | 17.52 |
| 2022 | 65.00 | Analyst x1 | 45.27 |
| 2023 | 118.00 | Analyst x1 | 75.08 |
| 2024 | 166.84 | Est @ 41.39% | 96.98 |
| 2025 | 216.55 | Est @ 29.79% | 115.00 |
| 2026 | 263.49 | Est @ 21.67% | 127.83 |
| 2027 | 305.62 | Est @ 15.99% | 135.45 |
| 2028 | 342.34 | Est @ 12.01% | 138.61 |
| Present value of next 10 years cash flows | $766.54 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $342.34 × (1 + 2.73%) ÷ (9.46% – 2.73%) |
$5,223.29 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $5,223.29 ÷ (1 + 9.46%)10 |
$2,114.81 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $766.54 + $2,114.81 |
$2,881.35 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $2,881.35 / 43.58 |
$66.11 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $66.11 |
| Current discount | Discount to share price of
$69.45
= -1 x ($69.45 - $66.11) / $66.11 |
-5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Q2 Holdings is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Q2 Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Q2 Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $-0.83 |
| NYSE:QTWO Share Price ** | NYSE (2019-03-19) in USD | $69.45 |
| United States of America Software Industry PE Ratio | Median Figure of 84 Publicly-Listed Software Companies | 52.56x |
| United States of America Market PE Ratio | Median Figure of 3,056 Publicly-Listed Companies | 17.77x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Q2 Holdings.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:QTWO Share Price ÷ EPS (both in USD) = 69.45 ÷ -0.83 |
-83.97x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Q2 Holdings is loss making, we can't compare its value to the US Software industry average.
- Q2 Holdings is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does
Q2 Holdings's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | -83.97x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts |
15.8%per year |
| United States of America Software Industry PEG Ratio | Median Figure of 66 Publicly-Listed Software Companies | 3.58x |
| United States of America Market PEG Ratio | Median Figure of 2,107 Publicly-Listed Companies | 1.49x |
*Line of best fit is calculated by linear regression .
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to calculate PEG ratio for Q2 Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Q2 Holdings's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $3.65 |
| NYSE:QTWO Share Price * | NYSE (2019-03-19) in USD | $69.45 |
| United States of America Software Industry PB Ratio | Median Figure of 220 Publicly-Listed Software Companies | 5.72x |
| United States of America Market PB Ratio | Median Figure of 5,154 Publicly-Listed Companies | 1.89x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:QTWO Share Price ÷ Book Value per Share (both in USD) = 69.45 ÷ 3.65 |
19.03x |
* Primary Listing of Q2 Holdings.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Q2 Holdings is overvalued based on assets compared to the US Software industry average.
Value checks
We assess Q2 Holdings's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Software industry average (and greater than 0)? (1 check) Q2 Holdings has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
QTWO Future Performance
How is Q2 Holdings expected to perform in the next 1 to 3 years based on estimates from 16 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Unable to compare Q2 Holdings's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
- Unable to compare Q2 Holdings's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
- Q2 Holdings's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:QTWO Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts | 15.8% |
| NYSE:QTWO Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts | 17.8% |
| United States of America Software Industry Earnings Growth Rate | Market Cap Weighted Average | 16.1% |
| United States of America Software Industry Revenue Growth Rate | Market Cap Weighted Average | 10.8% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 16 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 703 | 1 | ||
| 2022-12-31 | 571 | 1 | ||
| 2021-12-31 | 465 | 38 | -13 | 5 |
| 2020-12-31 | 377 | 35 | -32 | 16 |
| 2019-12-31 | 308 | 15 | -45 | 16 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 241 | 5 | -35 |
| 2018-09-30 | 226 | 4 | -29 |
| 2018-06-30 | 215 | -2 | -26 |
| 2018-03-31 | 204 | 13 | -25 |
| 2017-12-31 | 194 | 9 | -26 |
| 2017-09-30 | 184 | 6 | -28 |
| 2017-06-30 | 173 | -4 | -32 |
| 2017-03-31 | 161 | -7 | -34 |
| 2016-12-31 | 150 | 3 | -36 |
| 2016-09-30 | 138 | 4 | -37 |
| 2016-06-30 | 128 | 3 | -35 |
| 2016-03-31 | 118 | 8 | -30 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 16 Analyst Estimates (S&P Global) | See Below |
All data from Q2 Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 1.77 | 1.77 | 1.77 | 1.00 |
| 2022-12-31 | 0.86 | 0.86 | 0.86 | 1.00 |
| 2021-12-31 | -0.19 | 0.17 | -0.49 | 3.00 |
| 2020-12-31 | -0.76 | -0.45 | -0.96 | 9.00 |
| 2019-12-31 | -1.09 | -0.91 | -1.27 | 9.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | -0.83 |
| 2018-09-30 | -0.69 |
| 2018-06-30 | -0.62 |
| 2018-03-31 | -0.61 |
| 2017-12-31 | -0.63 |
| 2017-09-30 | -0.69 |
| 2017-06-30 | -0.79 |
| 2017-03-31 | -0.82 |
| 2016-12-31 | -0.92 |
| 2016-09-30 | -0.93 |
| 2016-06-30 | -0.88 |
| 2016-03-31 | -0.77 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Q2 Holdings's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Q2 Holdings has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
QTWO Past Performance
How has Q2 Holdings performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Q2 Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
- Unable to compare Q2 Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.
- Unable to compare Q2 Holdings's 1-year growth to the US Software industry average as it is not currently profitable.
Earnings and Revenue History
All data from Q2 Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 241.10 | -35.40 | 93.77 | 51.33 |
| 2018-09-30 | 225.63 | -29.06 | 87.69 | 46.49 |
| 2018-06-30 | 215.20 | -25.98 | 84.48 | 43.68 |
| 2018-03-31 | 204.25 | -25.17 | 81.28 | 41.84 |
| 2017-12-31 | 193.98 | -26.16 | 78.35 | 40.34 |
| 2017-09-30 | 184.43 | -28.16 | 76.16 | 38.17 |
| 2017-06-30 | 172.62 | -31.86 | 74.26 | 36.30 |
| 2017-03-31 | 161.00 | -33.74 | 70.98 | 34.21 |
| 2016-12-31 | 150.22 | -36.35 | 68.28 | 32.46 |
| 2016-09-30 | 138.48 | -37.26 | 64.02 | 30.56 |
| 2016-06-30 | 128.19 | -34.80 | 59.04 | 28.32 |
| 2016-03-31 | 118.47 | -30.07 | 54.29 | 25.29 |
| 2015-12-31 | 108.87 | -25.06 | 49.98 | 21.53 |
| 2015-09-30 | 100.61 | -21.40 | 46.80 | 18.34 |
| 2015-06-30 | 93.58 | -19.01 | 44.39 | 15.51 |
| 2015-03-31 | 86.45 | -18.71 | 42.15 | 13.50 |
| 2014-12-31 | 79.13 | -19.63 | 40.06 | 12.09 |
| 2014-09-30 | 72.65 | -21.37 | 37.89 | 11.43 |
| 2014-06-30 | 65.99 | -21.93 | 35.56 | 10.53 |
| 2014-03-31 | 60.87 | -20.95 | 32.54 | 9.90 |
| 2013-12-31 | 56.87 | -17.68 | 28.70 | 9.03 |
| 2013-09-30 | 53.15 | -13.63 | 25.43 | 7.79 |
| 2012-12-31 | 41.10 | -7.52 | 17.74 | 5.32 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- It is difficult to establish if Q2 Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
- It is difficult to establish if Q2 Holdings has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.
- It is difficult to establish if Q2 Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
Past performance checks
We assess Q2 Holdings's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Q2 Holdings has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
QTWO Health
How is Q2 Holdings's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Q2 Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
- Q2 Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Q2 Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Q2 Holdings Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 158.90 | 182.72 | 177.32 |
| 2018-09-30 | 159.99 | 180.12 | 298.02 |
| 2018-06-30 | 158.31 | 177.56 | 278.71 |
| 2018-03-31 | 154.86 | 175.17 | 294.12 |
| 2017-12-31 | 106.62 | 0.00 | 99.65 |
| 2017-09-30 | 102.64 | 0.00 | 88.86 |
| 2017-06-30 | 100.35 | 0.00 | 78.66 |
| 2017-03-31 | 100.38 | 0.00 | 82.17 |
| 2016-12-31 | 100.24 | 0.00 | 97.12 |
| 2016-09-30 | 102.50 | 0.00 | 92.33 |
| 2016-06-30 | 106.85 | 0.00 | 95.64 |
| 2016-03-31 | 111.77 | 0.07 | 105.00 |
| 2015-12-31 | 117.97 | 0.16 | 110.62 |
| 2015-09-30 | 123.38 | 0.25 | 119.89 |
| 2015-06-30 | 106.29 | 0.35 | 118.52 |
| 2015-03-31 | 109.22 | 0.44 | 119.70 |
| 2014-12-31 | 78.94 | 0.58 | 88.94 |
| 2014-09-30 | 81.27 | 0.76 | 90.37 |
| 2014-06-30 | 84.77 | 2.92 | 94.91 |
| 2014-03-31 | 74.58 | 7.40 | 86.67 |
| 2013-12-31 | 4.41 | 7.58 | 18.68 |
| 2013-09-30 | 10.33 | 7.75 | 21.17 |
| 2012-12-31 | 2.75 | 3.54 | 9.11 |
- Q2 Holdings's level of debt (115%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (146% vs 115% today).
CASH RUNWAY ANALYSIS
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
- Q2 Holdings has sufficient cash runway for more than 3 years based on current free cash flow.
- Q2 Holdings has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 10.2% each year.
Financial health checks
We assess Q2 Holdings's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Q2 Holdings has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
QTWO Dividends
What is Q2 Holdings's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Q2 Holdings
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Q2 Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Q2 Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 16 Analyst Estimates (S&P Global) | See Below |
| United States of America Software Industry Average Dividend Yield | Market Cap Weighted Average of 24 Stocks | 1.5% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | ||
| 2021-12-31 | ||
| 2020-12-31 | ||
| 2019-12-31 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Q2 Holdings has not reported any payouts.
- Unable to verify if Q2 Holdings's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Q2 Holdings's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Q2 Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Q2 Holdings has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
QTWO Management
CEO
| COMPENSATION | $6,135,869 |
| AGE | 46 |
| TENURE AS CEO | 5.4 years |
CEO Bio
Mr. Matthew P. Flake, also known as Matt, has been the Chief Executive Officer of Q2 Holdings, Inc. since October 2013 and its President since March 6, 2019. Mr. Flake has been Chief Executive Officer of Q2 Software, Inc. since December 2011. He serves as the President of Q2ebanking, Inc. and has been its Chief Executive Officer since 2012. Mr. Flake is responsible for sales, marketing and business development for Q2 as well as the holding company, CBG Holdings, Inc. He served as President of Q2 Holdings, Inc. since March 13, 2017 until August 17, 2017. He served as President at Q2 Holdings, Inc. from March 2008 to August 22, 2016. Mr. Flake served as Vice President of Sales of Q2 Holdings, Inc. since June, 2005 to March, 2008. He served as a Senior Vice President for Q2 where he was a significant contributor to the growth and strategic direction of the organization focused on helping regional and community-based financial institutions compete with the mega and money center banks. With more than 20 years of experience in the financial services industry, including sales and banking operations, he is intensely focused on helping regional and community focused financial institutions compete with the mega and money center banks. Mr. Flake has been a Director of Q2 Holdings, Inc. since October 2013. He serves as a Director of Q2 Software, Inc. He serves as a Member of U.S. Advisory Board of DH Corporation. Mr. Flake holds a B.A. in Business from Baylor University.
CEO Compensation
- Matt's compensation has increased whilst company is loss making.
- Matt's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Q2 Holdings management team in years:
- The average tenure for the Q2 Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Hank Seale
Founder & Executive Chairman
$219K
56
Matt Flake
CEO, President & Director
$6M
46
5.4 yrs
Jennifer Harris
Chief Financial Officer
$2M
50
5.3 yrs
Anderson Blue
Executive VP & CTO
$2M
46
8.3 yrs
Will Furrer
Chief Strategy Officer
$2M
50
Chris Petersen
Chief Revenue Officer
$3M
54
1.3 yrs
John Breeden
Executive Vice President of Operations
$1M
45
6.1 yrs
Rekha Garapati
Executive Vice President of Products & Operations
0.2 yrs
Lou Senko
Chief Information Officer & Senior VP
2 yrs
Bob Gujavarty
Investor Contact
Board of Directors Tenure
Average tenure and age of the Q2 Holdings board of directors in years:
- The tenure for the Q2 Holdings board of directors is about average.
Board of Directors
Matt Flake
CEO, President & Director
$6M
46
5.4 yrs
Chuck Doyle
Director
$176K
83
7.8 yrs
Hank Seale
Founder & Executive Chairman
$219K
56
Jim Offerdahl
Director
$175K
62
8.3 yrs
Jim Schaper
Lead Independent Director
$196K
66
5.3 yrs
Jeff Diehl
Director
$166K
48
11.7 yrs
Mike Maples
Director
$163K
75
7.1 yrs
R. Atchison
Director
$174K
58
2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 14. Mar 19 | Sell | Matthew Flake | Individual | 12. Mar 19 | 12. Mar 19 | -20,105 | $68.30 | $-1,373,172 | ||
| 05. Mar 19 | Sell | Jeffrey Diehl | Individual | 01. Mar 19 | 01. Mar 19 | -20,394 | $71.36 | $-1,455,224 | ||
| 05. Mar 19 | Sell | Adams Street Partners, LLC | Company | 01. Mar 19 | 01. Mar 19 | -45,319 | $71.36 | $-3,233,760 | ||
| 20. Aug 18 | Sell | Adams Street Partners, LLC | Company | 16. Aug 18 | 16. Aug 18 | -1,000,000 | $58.25 | $-58,250,000 | ||
| 24. May 18 | Sell | Michael Maples | Individual | 24. May 18 | 24. May 18 | -7,099 | $57.27 | $-406,560 | ||
Management checks
We assess Q2 Holdings's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Q2 Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
QTWO News
Simply Wall St News
Is Q2 Holdings, Inc.'s (NYSE:QTWO) CEO Overpaid Relative To Its Peers?
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Matt Flake's Compensation Compare With Similar Sized Companies. … is worth US$3.0b, and total annual CEO compensation is US$6.1m.
Simply Wall St - – Full articleIs Q2 Holdings, Inc.'s (NYSE:QTWO) Balance Sheet A Threat To Its Future?
Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Q2 Holdings, Inc. … This article will examine QTWO’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.
Simply Wall St - – Full articleRead This Before Buying Q2 Holdings, Inc. (NYSE:QTWO) Shares
But logic dictates you should pay some attention to whether insiders are buying or selling shares. … That means that even when the share price was below the current price of US$62.18, an insider wanted to cash in some shares … When an insider sells below the current price, it does tend to make us wonder about the current valuation
Simply Wall St - – Full articleQ2 Holdings Inc (NYSE:QTWO): Should The Recent Earnings Drop Worry You?
Today I will assess QTWO's recent performance announced on 30 September 2018 and evaluate these figures to its longer term trend and industry movements. … How Did QTWO's Recent Performance Stack Up Against Its Past. … QTWO is loss-making, with the most recent trailing twelve-month earnings of -US$29.1m (from 30 September 2018), which compared to last year has become.
Simply Wall St - – Full articleIs Q2 Holdings Inc's (NYSE:QTWO) CEO Being Overpaid?
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Matt Flake's Compensation Compare With Similar Sized Companies. … As you can see, Matt Flake is paid more than the median CEO pay at companies of a similar size, in the same market
Simply Wall St - – Full articleWhat Is Q2 Holdings Inc's (NYSE:QTWO) Share Price Doing?
As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … However, could the stock still be trading at a relatively cheap price. … Let’s examine Q2 Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity
Simply Wall St - – Full articleQ2 Holdings Inc (NYSE:QTWO): When Will It Breakeven?
The US$2.51b market-cap posted a loss in its most recent financial year of -US$26.16m and a latest trailing-twelve-month loss of -US$25.17m shrinking the gap between loss and breakeven? … The most pressing concern for investors is QTWO’s path to profitability – when will it breakeven. … I’ve put together a brief outline of industry analyst expectations for QTWO, its year of breakeven and its implied growth rate
Simply Wall St - – Full articleInterested In Q2 Holdings Inc (NYSE:QTWO)? Here's What Its Recent Performance Looks Like
I like to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … Each year, for the past half a decade Q2 Holdings's top-line has risen by 28.49% on average, signalling that the company is in a high-growth phase with expenses shooting ahead of revenues, leading to annual losses. … Viewing growth from a sector-level, the US internet industry has been growing its average earnings by double-digit 14.58% over the past year, and 18.33% over the last five years.
Simply Wall St - – Full articleIs Q2 Holdings Inc (QTWO) A Tech Industry Laggard Or Leader?
Tech analysts are forecasting for the entire software tech industry, a positive double-digit growth of 20.81% in the upcoming year , and a whopping growth of 89.53% over the next couple of years. … NYSE:QTWO PE PEG Gauge Nov 17th 17 Software tech companies are typically trading at a PE of 37x, higher than the rest of the US stock market PE of 22x. … If QTWO has been on your watchlist for a while, now may be the time to enter into the stock, if you like its growth prospects and are not highly concentrated in the tech industry.
Simply Wall St - – Full articleWhy Q2 Holdings Inc (QTWO) Could Be A Buy
Q2 Holdings Inc (NYSE:QTWO), a internet software and services company based in United States, saw a decent share price growth in the teens level on the NYSE over the last few months. … If you like the stock, you may want to keep an eye out for a potential price decline in the future. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at QTWO future expectations.
Simply Wall St - – Full articleQTWO Company Info
Description
Q2 Holdings, Inc. provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. It offers Q2 Digital Banking and Transactions, a browser-based digital banking solution that delivers RCFI-branded digital banking capabilities; Q2mobility App, a mobile and tablet digital banking solution; Q2mobile Remote Deposit Capture, a partnered solution that allows remote check deposit capture; and Q2 Person-to-Person Payments, a partnered secure and integrated person-to-person payments solution. The company also provides Q2 Corporate digital banking solutions designed to support commercial end users; Q2 Sentinel, a security analytics solution; Q2 Patrol, an event-driven validation product; Q2 SMART, a targeting and messaging platform; and Q2 CardSwap that allows account holders receiving newly issued cards to automatically change their payment information with existing subscription and digital point-of-sale services. In addition, it offers Q2 Gro, a digital account opening, and digital sales and marketing platform; Q2 Biller Direct, a bill payment solution; Centrix Dispute Tracking System, an electronic transaction dispute management solution; Centrix Payments I.Q. System, an ACH file monitoring and risk reporting solution; Centrix Exact/Transaction Management System, a fraud prevention tool; and Q2 Caliper Software Development Kit The company was formerly known as CBG Holdings, Inc. and changed its name to Q2 Holdings, Inc. in March 2013. Q2 Holdings, Inc. was founded in 2005 and is headquartered in Austin, Texas.
Details
| Name: | Q2 Holdings, Inc. |
| QTWO | |
| Exchange: | NYSE |
| Founded: | 2005 |
| $3,026,728,716 | |
| 43,581,407 | |
| Website: | http://www.q2ebanking.com |
| Address: |
Q2 Holdings, Inc. 13785 Research Boulevard, Suite 150, Austin, Texas, 78750, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | QTWO | Common Stock | New York Stock Exchange | US | USD | 20. Mar 2014 |
Number of employees
Current staff
Industry
| Application Software | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/20 00:33 |
| End of day share price update: | 2019/03/19 00:00 |
| Last estimates confirmation: | 2019/03/04 |
| Last earnings filing: | 2019/02/19 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
