Q2 Holdings Reports Strong 2024 Financial Performance

Q2 Holdings ( (QTWO) ) has released its Q4 earnings. Here is a breakdown of the information Q2 Holdings presented to its investors.

Q2 Holdings, Inc. is a prominent provider of digital transformation solutions for the financial services sector, aiding banks, credit unions, and fintech companies in enhancing their digital engagement with consumers and businesses. The company is headquartered in Austin, Texas, and is publicly traded on the NYSE under the ticker QTWO.

Q2 Holdings, Inc. recently announced its financial results for the fourth quarter and full year ending December 31, 2024, marking a year of solid growth and strategic advancements. The company reported a notable increase in revenue and improved gross margins, highlighting its successful execution of sales strategies and product offerings.

In the fourth quarter of 2024, Q2 Holdings achieved a revenue of $183.0 million, reflecting a 13% increase year-over-year. For the full year, revenue reached $696.5 million, showing a 12% increase compared to 2023. The company also reported a significant improvement in GAAP gross margin, which rose to 52.6% for the quarter and 50.9% for the year. Additionally, Q2 Holdings turned its quarterly net loss from the previous year into a modest net income of $0.2 million.

The year was marked by strategic wins, including seven Tier 1 and Enterprise contracts and a successful partnership with Wells Fargo to enhance commercial client experiences. Q2 Holdings also reported a substantial increase in subscription annualized recurring revenue and a growing backlog, indicating strong future revenue streams.

Looking forward, Q2 Holdings remains optimistic, with raised targets for revenue growth and adjusted EBITDA in 2025. The company plans to capitalize on its robust pipeline and growth opportunities across its product portfolio, positioning itself for continued success in the financial services industry.