Q2 Holdings
Market Cap
US$2.9b
Last Updated
2020/03/30 02:55 UTC
Data Sources
Company Financials +
Executive Summary
Q2 Holdings, Inc. provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -4.3% per year for the next 3 years
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Imperfect balance sheet with concerning outlook.
Similar Companies
Share Price & News
How has Q2 Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: QTWO's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
13.6%
QTWO
9.8%
US Software
12.5%
US Market
1 Year Return
-15.5%
QTWO
6.4%
US Software
-12.7%
US Market
Return vs Industry: QTWO underperformed the US Software industry which returned 6.4% over the past year.
Return vs Market: QTWO underperformed the US Market which returned -12.7% over the past year.
Shareholder returns
| QTWO | Industry | Market | |
|---|---|---|---|
| 7 Day | 13.6% | 9.8% | 12.5% |
| 30 Day | -21.8% | -8.9% | -14.7% |
| 90 Day | -27.3% | -6.8% | -21.5% |
| 1 Year | -15.5%-15.5% | 7.5%6.4% | -10.9%-12.7% |
| 3 Year | 68.3%68.3% | 100.4%91.8% | 12.6%5.4% |
| 5 Year | 180.9%180.9% | 165.1%146.5% | 31.9%17.5% |
Price Volatility Vs. Market
How volatile is Q2 Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In Q2 Holdings, Inc. (NYSE:QTWO)3 weeks ago | Simply Wall St
The Q2 Holdings (NYSE:QTWO) Share Price Is Up 229% And Shareholders Are Boasting About It1 month ago | Simply Wall St
Market Sentiment Around Loss-Making Q2 Holdings, Inc. (NYSE:QTWO)Valuation
Is Q2 Holdings undervalued compared to its fair value and its price relative to the market?
7.51x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: QTWO ($58.91) is trading above our estimate of fair value ($3.5)
Significantly Below Fair Value: QTWO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: QTWO is unprofitable, so we can't compare its PE Ratio to the Software industry average.
PE vs Market: QTWO is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate QTWO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: QTWO is overvalued based on its PB Ratio (7.5x) compared to the US Software industry average (4.3x).
Next Steps
Future Growth
How is Q2 Holdings forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
-4.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: QTWO is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: QTWO is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: QTWO is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: QTWO's revenue (18.5% per year) is forecast to grow faster than the US market (7.3% per year).
High Growth Revenue: QTWO's revenue (18.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: QTWO's Return on Equity is forecast to be low in 3 years time (5.6%).
Next Steps
Past Performance
How has Q2 Holdings performed over the past 5 years?
-21.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: QTWO is currently unprofitable.
Growing Profit Margin: QTWO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: QTWO is unprofitable, and losses have increased over the past 5 years at a rate of -21.2% per year.
Accelerating Growth: Unable to compare QTWO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: QTWO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.7%).
Return on Equity
High ROE: QTWO has a negative Return on Equity (-18.68%), as it is currently unprofitable.
Next Steps
Financial Health
How is Q2 Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: QTWO's short term assets ($186.3M) exceed its short term liabilities ($133.0M).
Long Term Liabilities: QTWO's short term assets ($186.3M) do not cover its long term liabilities ($497.1M).
Debt to Equity History and Analysis
Debt Level: QTWO's debt to equity ratio (112%) is considered high.
Reducing Debt: QTWO's debt to equity ratio has increased from 0% to 112% over the past 5 years.
Balance Sheet
Inventory Level: QTWO has a low level of unsold assets or inventory.
Debt Coverage by Assets: QTWO's debt is not covered by short term assets (assets are 0.4x debt).
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.
Stable Cash Runway: QTWO has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if QTWO has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is Q2 Holdings's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate QTWO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate QTWO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if QTWO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if QTWO's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of QTWO's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Matt Flake (47yo)
6.42s
Tenure
US$5,216,787
Compensation
Mr. Matthew P. Flake, also known as Matt, has been the Chief Executive Officer of Q2 Holdings, Inc. since October 2013 and its President since March 6, 2019. Mr. Flake has been Chief Executive Officer of Q ...
CEO Compensation Analysis
Compensation vs Market: Matt's total compensation ($USD5.22M) is about average for companies of similar size in the US market ($USD5.55M).
Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Executive Chairman | no data | US$219.00k | 0.84% $23.9m | |
| CEO, President & Director | 6.42yrs | US$5.22m | 0.010% $292.6k | |
| Chief Financial Officer | 6.25yrs | US$2.27m | 0.055% $1.6m | |
| Executive VP & CTO | 9.25yrs | US$1.78m | 0.093% $2.6m | |
| Chief Strategy & Marketing Officer | 0.33yr | US$1.75m | 0.025% $706.2k | |
| Executive Vice President of Customer Experience | 1.17yrs | US$2.49m | 0.13% $3.7m | |
| Executive Vice President of Operations | 0.33yr | US$1.03m | 0.019% $533.4k | |
| Chief Information Officer & Senior VP | 3yrs | no data | no data | |
| Investor Contact | no data | no data | no data | |
| Chief Compliance Officer & Chief Privacy Officer | 2.92yrs | no data | no data |
3.0yrs
Average Tenure
47yo
Average Age
Experienced Management: QTWO's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Executive Chairman | no data | US$219.00k | 0.84% $23.9m | |
| CEO, President & Director | 6.42yrs | US$5.22m | 0.010% $292.6k | |
| Independent Director | 9.25yrs | US$175.00k | 0.015% $426.1k | |
| Independent Director | 8yrs | US$163.00k | 0.012% $344.8k | |
| Independent Director | 12.67yrs | US$161.50k | 0.013% $358.2k | |
| Independent Director | 8.83yrs | US$176.50k | 0.015% $413.9k | |
| Lead Independent Director | 6.25yrs | US$196.50k | 0.046% $1.3m | |
| Independent Director | 3yrs | US$164.00k | no data |
8.0yrs
Average Tenure
60.5yo
Average Age
Experienced Board: QTWO's board of directors are considered experienced (8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: QTWO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.9%.
Top Shareholders
Company Information
Q2 Holdings, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Q2 Holdings, Inc.
- Ticker: QTWO
- Exchange: NYSE
- Founded: 2004
- Industry: Application Software
- Sector: Software
- Market Cap: US$2.852b
- Shares outstanding: 48.42m
- Website: https://www.q2ebanking.com
Number of Employees
Location
- Q2 Holdings, Inc.
- 13785 Research Boulevard
- Suite 150
- Austin
- Texas
- 78750
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| QTWO | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Mar 2014 |
Biography
Q2 Holdings, Inc. provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. The company 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 integrated person-to-person payments solution. It also provides Q2 Business Solutions, a digital banking solutions to 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, the company 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. Futher, it provides Q2 Contextual PFM, which allows end users to add external accounts and view them together with internal accounts on digital banking home page; and Q2 Goals that enables end users to establish and save towards specific savings goals. 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 2004 and is headquartered in Austin, Texas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 02:55 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.