Q2 Holdings
Market Cap
US$3.9b
Last Updated
2019/11/20 00:42 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.
Snowflake
Mediocre balance sheet with limited growth.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
6.5%
QTWO
2.2%
US Software
0.9%
US Market
1 Year Return
61.7%
QTWO
39.3%
US Software
16.8%
US Market
Return vs Industry: QTWO exceeded the US Software industry which returned 39.3% over the past year.
Return vs Market: QTWO exceeded the US Market which returned 16.8% over the past year.
Shareholder returns
| QTWO | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.5% | 2.2% | 0.9% |
| 30 Day | 13.2% | 10.5% | 4.5% |
| 90 Day | -12.4% | 4.6% | 6.2% |
| 1 Year | 61.7%61.7% | 41.5%39.3% | 19.4%16.8% |
| 3 Year | 155.4%155.4% | 126.3%117.4% | 47.5%38.0% |
| 5 Year | 319.2%319.2% | 176.1%156.3% | 62.0%44.1% |
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
1 week ago | Simply Wall St
Q2 Holdings, Inc. Just Released Its Third-Quarter And Analysts Have Been Updating Their Estimates4 weeks ago | Simply Wall St
Does Q2 Holdings, Inc.'s (NYSE:QTWO) CEO Pay Reflect Performance?1 month ago | Simply Wall St
Before You Buy Q2 Holdings, Inc. (NYSE:QTWO), Consider Its VolatilityValuation
Is Q2 Holdings undervalued compared to its fair value and its price relative to the market?
10.14x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: QTWO ($80.44) is trading above our estimate of fair value ($40.98)
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 (10.1x) compared to the US Software industry average (6x).
Next Steps
Future Growth
How is Q2 Holdings forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
4.7%
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 (20.9% per year) is forecast to grow faster than the US market (7.3% per year).
High Growth Revenue: QTWO's revenue (20.9% per year) is forecast to grow faster 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 (7.5%).
Next Steps
Past Performance
How has Q2 Holdings performed over the past 5 years?
-18.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: QTWO has high quality earnings.
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 -18.4% 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 (25.8%).
Return on Equity
High ROE: QTWO has a negative Return on Equity (-17.57%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Q2 Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: QTWO's short term assets ($688.8M) exceeds its short term liabilities ($116.2M)
Long Term Liabilities: QTWO's short term assets ($688.8M) exceeds its long term liabilities (479.7M)
Debt to Equity History and Analysis
Debt Level: QTWO's debt to equity ratio (109.8%) is considered high.
Reducing Debt: QTWO's debt to equity ratio has increased from 0.06% to 109.8% 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 covered by short term assets (assets are 1.6x 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
Current dividend yield vs market & industry
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
What is the CEO of Q2 Holdings's salary, the management and board of directors tenure and is there insider trading?
2.7yrs
Average management tenure
CEO
Matt Flake (47yo)
6.1yrs
Tenure
US$5,216,787
Compensation
Mr. Matthew P. Flake, also known as Matt, has been the Chief Executive Officer of Q2 Holdings, Inc. since October 2013 and its President since March 6, 2019. Mr. Flake has been Chief Executive Officer of QÂ ...
CEO Compensation Analysis
Compensation vs Market: Matt's total compensation ($USD5.22M) is about average for companies of similar size in the US market ($USD5.10M).
Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.7yrs
Average Tenure
47yo
Average Age
Experienced Management: QTWO's management team is considered experienced (2.7 years average tenure).
Board Age and Tenure
7.8yrs
Average Tenure
61yo
Average Age
Experienced Board: QTWO's board of directors are considered experienced (7.8 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Executive Officer CEO, President & Director |
| Shares | 120,000 |
| Max Price | US$69.50 |
| Entity | Individual |
| Role | Chief Executive Officer CEO, President & Director |
| Shares | 20,105 |
| Max Price | US$68.30 |
| Entity | Company |
| Shares | 65,713 |
| Max Price | US$71.36 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.1%.
Management Team
Hank Seale (57yo)
Founder & Executive Chairman
- Tenure: 0yrs
- Compensation: US$219.00k
Anderson Blue (47yo)
Executive VP & CTO
- Tenure: 8.9yrs
- Compensation: US$1.78m
Matt Flake (47yo)
CEO, President & Director
- Tenure: 6.1yrs
- Compensation: US$5.22m
Suzette Junier
Chief Compliance Officer & Chief Privacy Officer
- Tenure: 2.6yrs
Boogie Wittenburg (47yo)
Executive Vice President of Customer Experience
- Tenure: 0.8yrs
- Compensation: US$2.49m
Will Furrer (51yo)
Chief Strategy Officer
- Tenure: 0yrs
- Compensation: US$1.75m
Jennifer Harris (51yo)
Chief Financial Officer
- Tenure: 5.9yrs
- Compensation: US$2.27m
Lou Senko
Chief Information Officer & Senior VP
- Tenure: 2.7yrs
Rekha Garapati (43yo)
Executive Vice President of Products & Operations
- Tenure: 0.8yrs
Josh Yankovich
Investor Contact
- Tenure: 0yrs
Board Members
Jim Offerdahl (63yo)
Independent Director
- Tenure: 8.9yrs
- Compensation: US$175.00k
Hank Seale (57yo)
Founder & Executive Chairman
- Tenure: 0yrs
- Compensation: US$219.00k
Mike Maples (76yo)
Independent Director
- Tenure: 7.8yrs
- Compensation: US$163.00k
Jeff Diehl (49yo)
Independent Director
- Tenure: 12.3yrs
- Compensation: US$161.50k
Chuck Doyle (84yo)
Independent Director
- Tenure: 8.5yrs
- Compensation: US$176.50k
Jim Schaper (67yo)
Lead Independent Director
- Tenure: 5.9yrs
- Compensation: US$196.50k
Matt Flake (47yo)
CEO, President & Director
- Tenure: 6.1yrs
- Compensation: US$5.22m
R. Atchison (59yo)
Independent Director
- Tenure: 2.7yrs
- Compensation: US$164.00k
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: 2005
- Industry: Application Software
- Sector: Software
- Market Cap: US$3.874b
- Shares outstanding: 48.16m
- 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. It offers Q2 Digital Banking and Transactions, a browser-base ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/20 00:42 |
| End of Day Share Price | 2019/11/19 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.