Q2 Holdings, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Q2 Holdings, Inc. has submitted its 2023 annual report (10-K), providing a detailed financial overview for the fiscal year ending December 31, 2023.</b>

AI Summary

Q2 Holdings, Inc. (QTWO) filed a Annual Report (10-K) with the SEC on February 21, 2024. Q2 Holdings, Inc. filed its annual report for the fiscal year ended December 31, 2023. The filing is a 10-K, indicating a comprehensive overview of the company's financial performance and condition. The company's principal business address is 10355 Pecan Park Boulevard, Austin, TX 78729. Q2 Holdings, Inc. operates in the Services-Prepackaged Software industry, SIC code 7372. The filing was submitted on February 21, 2024.

Why It Matters

For investors and stakeholders tracking Q2 Holdings, Inc., this filing contains several important signals. This 10-K filing provides investors with a comprehensive look at Q2 Holdings' financial health, operational performance, and strategic direction for the fiscal year 2023. As a software and services company for regional financial institutions, the details within this filing are crucial for understanding its competitive positioning and future growth prospects in the fintech sector.

Risk Assessment

Risk Level: medium — Q2 Holdings, Inc. shows moderate risk based on this filing. The filing is a standard annual report (10-K), which typically contains detailed financial information and risk factors, necessitating careful review by investors to assess the company's overall health and potential risks.

Analyst Insight

Investors should carefully review the financial statements and risk factors within the 10-K to understand Q2 Holdings' performance and outlook for the upcoming fiscal year.

Key Numbers

• 20231231 — Fiscal Year End (Fiscal year end date)
• 20240221 — Filing Date (Date the filing was submitted)
• 116 — Document Count (Number of documents in the filing)
• 7372 — SIC Code (Standard Industrial Classification code)

Key Players & Entities

• Q2 Holdings, Inc. (company) — Filer name
• 10-K (document) — Form type
• 20231231 (date) — Conformed period of report
• 20240221 (date) — Filed as of date
• Austin (location) — Business address city
• 78729 (location) — Business address zip
• 7372 (industry) — Standard Industrial Classification
• CBG Holdings, Inc. (company) — Former company name

FAQ

Industry Context

Q2 Holdings, Inc. operates in the software industry, specifically providing digital banking solutions for financial institutions. This sector is characterized by rapid technological advancements and increasing competition.

Regulatory Implications

The filing is made in accordance with the Securities Exchange Act of 1934, requiring public companies to disclose material information about their financial condition and business operations.

What Investors Should Do

1. Review the detailed financial statements and management's discussion and analysis in the 10-K.
2. Analyze the risk factors section for potential challenges and uncertainties facing Q2 Holdings.
3. Compare the 2023 performance metrics with previous years to identify trends and assess growth.

Key Dates

• 2024-02-21: 10-K Filing — Submission of the annual report for the fiscal year 2023.

Year-Over-Year Comparison

This is the initial filing of the 2023 annual report (10-K), providing the first comprehensive look at the company's performance for the fiscal year ending December 31, 2023.

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value QTWO New York Stock Exchange
• $2.7 — over 5 billion times and executed over $2.7 trillion in financial transactions. Whi
• $17.0 billion — arket for our solutions to greater than $17.0 billion. Our solutions utilize a software-as-a
• $624.6 m — t three years. We had total revenues of $624.6 million, $565.7 million and $498.7 millio
• $565.7 million — e had total revenues of $624.6 million, $565.7 million and $498.7 million in 2023, 2022 and 20
• $498.7 million — s of $624.6 million, $565.7 million and $498.7 million in 2023, 2022 and 2021, respectively. W
• $65.4 m — g activities. We incurred net losses of $65.4 million, $109.0 million and $112.7 millio
• $109.0 million — e incurred net losses of $65.4 million, $109.0 million and $112.7 million in 2023, 2022 and 20
• $112.7 million — es of $65.4 million, $109.0 million and $112.7 million in 2023, 2022 and 2021, respectively.

Filing Documents

• qtwo-20231231.htm (10-K) — 2405KB
• a231231exhibit43.htm (EX-4.3) — 9KB
• a231231exhibit105.htm (EX-10.5) — 101KB
• a231231exhibit106.htm (EX-10.6) — 98KB
• a231231exhibit1011.htm (EX-10.11) — 97KB
• a231231ex211listofsubsidia.htm (EX-21.1) — 9KB
• a231231exhibit231eyconsent.htm (EX-23.1) — 12KB
• a231231exhibit311.htm (EX-31.1) — 9KB
• a231231exhibit312.htm (EX-31.2) — 9KB
• a231231exhibit321.htm (EX-32.1) — 5KB
• a231231exhibit322.htm (EX-32.2) — 5KB
• a231231exhibit971.htm (EX-97.1) — 25KB
• qtwo-20231231_g1.jpg (GRAPHIC) — 134KB
• 0001410384-24-000015.txt (&nbsp;) — 12145KB
• qtwo-20231231.xsd (EX-101.SCH) — 71KB
• qtwo-20231231_cal.xml (EX-101.CAL) — 117KB
• qtwo-20231231_def.xml (EX-101.DEF) — 351KB
• qtwo-20231231_lab.xml (EX-101.LAB) — 1001KB
• qtwo-20231231_pre.xml (EX-101.PRE) — 652KB
• qtwo-20231231_htm.xml (XML) — 1674KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 59 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 80 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. 81 Item 9. Change in and Disagreements With Accountants on Accounting and Financial Disclosure. 81 Item 9A.

Controls and Procedures

Controls and Procedures. 81 Item 9B. Other Information. 82 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 82 PART III Item 10. Directors, Executive Officers and Corporate Governance. 83 Item 11.

Executive Compensation

Executive Compensation. 83 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 83 Item 13. Certain Relationships and Related Transactions, and Director Independence. 83 Item 14. Principal Accounting Fees and Services. 83 PART IV Item 15. Exhibits, Financial Statement Schedules. 84 Item 16. Form 10-K Summary 88 2 Table of Contents PART I Special Note Regarding Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. The statements and information contained in this Annual Report on Form 10-K that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. You can identify these statements by words such as "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "seeks," "potential," "predicts," "projects," "should," "will," "strategy," "future," "likely," or "would" or the negative of these terms or similar expressions. These statements are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All of our forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from our expectations. Factors that could cause or contribute to such differences include, but are not limited to, the following: global macroeconomic uncertainties and challenges in the financial services industry and credit markets, including as a result of recent bank failures, inflation and higher interest rates and their potential impacts on our prospects'

Business

Item 1. Business. Overview Q2 is a leading provider of digital banking and lending solutions to financial institutions, financial technology companies, or FinTechs, and alternative finance companies, or Alt-FIs, wanting to incorporate banking into their customer engagement and servicing strategies. Our solutions transform the ways in which financial institutions and other financial services providers engage with account holders and end users, or End Users. Our solutions include a broad and deep portfolio of digital banking solutions; digital lending and relationship pricing solutions; an open technology platform, the Q2 Innovation Studio, which is a portfolio of technologies and programs which can be leveraged to design, develop, and distribute innovative products, services, features, and integrations by enabling a partnership ecosystem on Q2's digital banking platform; and Helix, a comprehensive banking as a service, or BaaS, solution which also serves as a cloud-native core, both of which enable innovative companies and financial institutions to integrate unique banking products and services into their offerings. We purpose-build our platforms and solutions to enable success for our customers and technology partners by allowing them to digitize their operations and offerings, differentiate their digital brands, integrate traditional and emerging financial services, and ultimately, enhance their End-User acquisition, engagement and retention and improve their operational efficiencies and profitability. We have deep domain expertise in developing and delivering advanced digital solutions designed to help our customers and technology partners compete in the complex and heavily regulated financial services industry. Over 19 years ago, Q2 began by providing digital banking solutions to regional and community financial institutions, or RCFIs. We have rapidly grown since then through a combination of broad market acceptance of our award-winning solutions and relentles

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View this 10-K filing on SEC EDGAR