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Q2 Holdings

NYSE:QTWO
Snowflake Description

Adequate balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
QTWO
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Software
Company description

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
1.8%
NYSE:QTWO
2.5%
US Software
1.6%
US Market
1 Year Returns
44.4%
NYSE:QTWO
24.3%
US Software
3.2%
US Market
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.
Price Volatility
QTWO
Industry
5yr Volatility vs Market

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.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Q2 Holdings.

NYSE:QTWO Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:QTWO
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.

NYSE:QTWO DCF 1st Stage: Next 10 year cash flow forecast
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
NYSE:QTWO DCF 2nd Stage: Terminal Value
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
NYSE:QTWO Total Equity Value
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
NYSE:QTWO Discount to Share Price
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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NYSE:QTWO PE (Price to Earnings) Ratio Data Sources
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.

NYSE:QTWO PE (Price to Earnings) Ratio Calculation
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?
Raw Data
NYSE:QTWO PEG (Price to Earnings to Growth) Ratio Data Sources
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?
Raw Data
NYSE:QTWO PB (Price to Book) Ratio Data Sources
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
NYSE:QTWO PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess Q2 Holdings's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. 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!
Annual Growth Rate
15.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Q2 Holdings expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:QTWO Future Growth Rates Data Sources
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
Raw Data
NYSE:QTWO Analysts Growth Expectations Data Sources
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 numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:QTWO Future Estimates Data
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
NYSE:QTWO Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Q2 Holdings is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Q2 Holdings's revenue is expected to grow by 17.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:QTWO 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.

NYSE:QTWO Future Estimates Data
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
NYSE:QTWO Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Q2 Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Q2 Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Q2 Holdings's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Q2 Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Q2 Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:QTWO Past Revenue, Cash Flow and Net Income Data
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.
X
Past performance checks
We assess Q2 Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Q2 Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Q2 Holdings Company Filings, last reported 2 months ago.

NYSE:QTWO Past Debt and Equity Data
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.
X
Financial health checks
We assess Q2 Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Q2 Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
0%
Current annual income from Q2 Holdings dividends.
If you bought $2,000 of Q2 Holdings shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NYSE:QTWO Annualized Past and Future Dividends
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.

NYSE:QTWO Future Dividends Estimate Data
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.
Current Payout to shareholders
What portion of Q2 Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Q2 Holdings has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Q2 Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Q2 Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Matt Flake
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:

5.3
Average Tenure
50
Average Age
  • 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

TITLE
Founder & Executive Chairman
COMPENSATION
$219K
AGE
56

Matt Flake

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
46
TENURE
5.4 yrs

Jennifer Harris

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
50
TENURE
5.3 yrs

Anderson Blue

TITLE
Executive VP & CTO
COMPENSATION
$2M
AGE
46
TENURE
8.3 yrs

Will Furrer

TITLE
Chief Strategy Officer
COMPENSATION
$2M
AGE
50

Chris Petersen

TITLE
Chief Revenue Officer
COMPENSATION
$3M
AGE
54
TENURE
1.3 yrs

John Breeden

TITLE
Executive Vice President of Operations
COMPENSATION
$1M
AGE
45
TENURE
6.1 yrs

Rekha Garapati

TITLE
Executive Vice President of Products & Operations
TENURE
0.2 yrs

Lou Senko

TITLE
Chief Information Officer & Senior VP
TENURE
2 yrs

Bob Gujavarty

TITLE
Investor Contact
Board of Directors Tenure

Average tenure and age of the Q2 Holdings board of directors in years:

7.1
Average Tenure
60
Average Age
  • The tenure for the Q2 Holdings board of directors is about average.
Board of Directors

Matt Flake

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
46
TENURE
5.4 yrs

Chuck Doyle

TITLE
Director
COMPENSATION
$176K
AGE
83
TENURE
7.8 yrs

Hank Seale

TITLE
Founder & Executive Chairman
COMPENSATION
$219K
AGE
56

Jim Offerdahl

TITLE
Director
COMPENSATION
$175K
AGE
62
TENURE
8.3 yrs

Jim Schaper

TITLE
Lead Independent Director
COMPENSATION
$196K
AGE
66
TENURE
5.3 yrs

Jeff Diehl

TITLE
Director
COMPENSATION
$166K
AGE
48
TENURE
11.7 yrs

Mike Maples

TITLE
Director
COMPENSATION
$163K
AGE
75
TENURE
7.1 yrs

R. Atchison

TITLE
Director
COMPENSATION
$174K
AGE
58
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • Q2 Holdings insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) 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
X
Management checks
We assess Q2 Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Is 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 -

Read 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 -

Q2 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 -

Is 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 -

What 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 -

Q2 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 -

Interested 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 -

Is 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 -

Why 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 -

QTWO 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
Staff numbers
1,190
Q2 Holdings employees.
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.