Q2 Holdings Files Q3 2024 10-Q

TL;DR

Q2 Holdings filed its Q3 2024 10-Q. Financials look steady.

AI Summary

Q2 Holdings, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter of 2024. Key financial figures and business segments are presented, reflecting the company's ongoing activities in the software services sector.

Why It Matters

This filing provides investors with an update on Q2 Holdings' financial health and operational performance for the third quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: medium — As a public company filing quarterly reports, Q2 Holdings faces inherent market and operational risks that are detailed within the filing.

Key Numbers

• 72 — Public Document Count (Indicates the volume of documents associated with this filing.)
• 20240930 — Conformed Period of Report (Specifies the end date of the reporting quarter.)

Key Players & Entities

• Q2 Holdings, Inc. (company) — Filer of the 10-Q
• 2024-09-30 (date) — End of the reporting period
• 2024-11-06 (date) — Filing date
• Austin, TX (location) — Company headquarters

FAQ

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value QTWO New York Stock Exchange

Filing Documents

• qtwo-20240930.htm (10-Q) — 1304KB
• a240930q3exhibit311.htm (EX-31.1) — 9KB
• a240930q3exhibit312.htm (EX-31.2) — 9KB
• a240930q3exhibit321.htm (EX-32.1) — 5KB
• a240930q3exhibit322.htm (EX-32.2) — 5KB
• 0001410384-24-000197.txt ( ) — 6636KB
• qtwo-20240930.xsd (EX-101.SCH) — 41KB
• qtwo-20240930_cal.xml (EX-101.CAL) — 77KB
• qtwo-20240930_def.xml (EX-101.DEF) — 205KB
• qtwo-20240930_lab.xml (EX-101.LAB) — 582KB
• qtwo-20240930_pre.xml (EX-101.PRE) — 397KB
• qtwo-20240930_htm.xml (XML) — 880KB

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. 5

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk. 42

Controls and Procedures

Item 4. Controls and Procedures. 43

: OTHER INFORMATION

PART II: OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings. 44

Risk Factors

Item 1A. Risk Factors. 44

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 45

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 45

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 45

Other Information

Item 5. Other Information. 45

Exhibits

Item 6. Exhibits. 46

SIGNATURES

SIGNATURES 48 2 Table of Contents Special Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q 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 Quarterly Report on Form 10-Q 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 economic uncertainties and challenges or changes in the financial services industry and credit markets, including as a result of recent bank failures, mergers and acquisitions within the banking sector, inflation, higher and shifting interest rates and any potential financial regulations and their potential impacts on our prospects' and customers' operations, the timing of prospect and customer implementations and purchasing decisions, our business sales cycles and on account holder or end user, or End User, usage of our solutions; the risk of increased o

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Q2 HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) September 30, 2024 December 31, 2023 (unaudited) Assets Current assets: Cash and cash equivalents $ 320,294 $ 229,655 Restricted cash 1,854 3,977 Investments 87,558 94,353 Accounts receivable, net 57,924 42,899 Contract assets, current portion, net 7,228 9,193 Prepaid expenses and other current assets 17,559 11,625 Deferred solution and other costs, current portion 24,256 27,521 Deferred implementation costs, current portion 9,666 8,741 Total current assets 526,339 427,964 Property and equipment, net 34,248 41,178 Right of use assets 31,055 35,453 Deferred solution and other costs, net of current portion 28,798 26,090 Deferred implementation costs, net of current portion 24,795 21,480 Intangible assets, net 101,147 121,572 Goodwill 512,869 512,869 Contract assets, net of current portion and allowance 10,072 12,210 Other long-term assets 3,492 2,609 Total assets $ 1,272,815 $ 1,201,425 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 13,230 $ 19,353 Accrued liabilities 19,615 16,471 Accrued compensation 25,908 26,580 Deferred revenues, current portion 141,267 118,723 Lease liabilities, current portion 10,784 10,436 Total current liabilities 210,804 191,563 Convertible notes, net of current portion 491,951 490,464 Deferred revenues, net of current portion 25,324 17,350 Lease liabilities, net of current portion 39,357 45,588 Other long-term liabilities 10,262 7,981 Total liabilities 777,698 752,946 Commitments and contingencies (Note 8) Stockholders' equity: Preferred stock: $ 0.0001 par value; 5,000 shares authorized, no shares issued or outstanding as of September 30, 2024 and December 31, 2023 — — Common stock: $ 0.0001 par value; 150,000 shares authorized, 60,401 issued and outstanding as of September 30, 2024 and 59,031 shares issued and outstanding as of December 31, 2

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View this 10-Q filing on SEC EDGAR