0001410384-17-000112.txt : 20170802 0001410384-17-000112.hdr.sgml : 20170802 20170802170417 ACCESSION NUMBER: 0001410384-17-000112 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20170802 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20170802 DATE AS OF CHANGE: 20170802 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Q2 Holdings, Inc. CENTRAL INDEX KEY: 0001410384 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 202706637 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-36350 FILM NUMBER: 171001055 BUSINESS ADDRESS: STREET 1: 13785 RESEARCH BOULEVARD STREET 2: SUITE 150 CITY: Austin STATE: TX ZIP: 78750 BUSINESS PHONE: 512-275-0072 MAIL ADDRESS: STREET 1: 13785 RESEARCH BOULEVARD STREET 2: SUITE 150 CITY: Austin STATE: TX ZIP: 78750 FORMER COMPANY: FORMER CONFORMED NAME: CBG Holdings, Inc. DATE OF NAME CHANGE: 20120103 FORMER COMPANY: FORMER CONFORMED NAME: CBG Holdings Inc DATE OF NAME CHANGE: 20070821 8-K 1 q220178k.htm 8-K Document


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 

 CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 2, 2017
 
Q2 HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or Other Jurisdiction of
Incorporation)
 
001-36350
(Commission File Number)
 
20-2706637
(IRS Employer
Identification No.)

 

13785 Research Blvd, Suite 150
Austin, Texas 78750
(512) 275-0072
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)
Not Applicable

(Former name or former address, if changed since last report)

 


(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o 
 
 






Item 2.02. Results of Operations and Financial Condition.
On August 2, 2017, Q2 Holdings, Inc. (the “Company”) issued a press release regarding its financial results for the second quarter ended June 30, 2017. A copy of the Company’s press release is furnished herewith as Exhibit 99.1.
The information furnished in this Current Report under this Item 2.02 and the exhibit furnished herewith shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.
 
Description
 
 
99.1
 
Press release dated August 2, 2017
 
 
 
 
 
 
 






SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
Q2 HOLDINGS, INC.
 
 
August 2, 2017
/s/ Jennifer N. Harris
Jennifer N. Harris
Chief Financial Officer






Exhibit Index
Exhibit No.
 
Description
 
 
99.1
 
Press release dated August 2, 2017
 
 
 
 
 
 
 



 EX-99.1 2 q22017exhibit991.htm EXHIBIT 99.1 Exhibit

Exhibit 99.1

Q2 Holdings, Inc. Announces Second Quarter 2017 Financial Results
Total second quarter revenue of $47.6 million, up 32 percent year-over-year

AUSTIN, Texas (Aug. 2, 2017) - Q2 Holdings, Inc. (NYSE:QTWO), a leading provider of secure, cloud-based digital banking solutions for community-focused financial institutions, today announced results for its second quarter ending June 30, 2017.

Second Quarter 2017 Results

•
Revenue for the second quarter of $47.6 million, up 32 percent year-over-year and up 7 percent sequentially.

•
GAAP gross margin for the second quarter of 48.9 percent, up from 47.6 percent one year ago. Non-GAAP gross margin for the second quarter of 52.6 percent, up from 51.1 percent one year ago.
 
•
GAAP net loss for the second quarter of $7.8 million, which compares to a GAAP net loss of $9.7 million for the second quarter of 2016. Adjusted EBITDA for the second quarter of positive $1.4 million, an improvement from negative $2.3 million one year ago.

“We executed well across the organization in the second quarter,” said Matt Flake, CEO of Q2. “I was particularly pleased with the uptick in bank activity in the quarter and continued strength across credit unions. I am encouraged by our Tier 1 pipeline and optimistic that we should convert multiple opportunities in the second half of 2017.”

Second Quarter 2017 Highlights

•
Exited the second quarter with approximately 9.6 million registered users on the Q2 Platform, representing 7 percent sequential and 25 percent year-over-year growth.

•
Launched Q2 Open with early adopter Qapital, a leading, mobile-first fintech company whose personal finance app has more than 300,000 active users.

•
Received the NAFCU Services Innovation Award for Q2 SMART. The NAFCU Services annual Innovation Awards are the credit union industry’s most recognized awards competition for groundbreaking solutions.

Financial Outlook

Q2 Holdings is providing guidance for its third quarter 2017 as follows:

•
Total revenue of $49.8 to $50.2 million, which would represent year-over-year growth of 30 percent to 31 percent.

•
Adjusted EBITDA of positive $2.2 million to $2.6 million. GAAP net loss is the most comparable GAAP measure to adjusted EBITDA. Adjusted EBITDA differs from GAAP net loss in that it excludes depreciation and amortization, stock based compensation, acquisition-related costs, interest, and income taxes. Q2 Holdings is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Q2 Holdings has not provided guidance for GAAP net loss or a reconciliation of the foregoing forward-looking adjusted EBITDA guidance to GAAP net loss.

Q2 Holdings is providing guidance for the full-year 2017 as follows:

•
Total revenue of $193.8 to $195.0 million, which would represent year-over-year growth of 29 percent to 30 percent.

•
Adjusted EBITDA of positive $7.8 million to $8.8 million. Adjusted EBITDA differs from GAAP net loss in that it excludes depreciation and amortization, stock based compensation, acquisition-related costs, interest, and income taxes. Q2 Holdings is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Q2 Holdings has not provided guidance for GAAP net loss or a reconciliation of the foregoing forward-looking adjusted EBITDA guidance to GAAP net loss.



Conference Call Details
Date: 
August 3, 2017
 
Time:     
8:30 a.m. EDT
 
Hosts: 
Matt Flake, CEO / Jennifer Harris, CFO
 
Dial in: 
US toll free: 1-877-201-0168
 
 
International: 1-647-788-4901
 
Conference ID:        
51913770
 

Please join the conference call at least 10 minutes before start time to ensure the line is connected. A live webcast of the conference call will be accessible from the investor services section of the Q2 Holdings, Inc. website at http://investors.q2ebanking.com/.

A replay of the webcast will also be available at this website on a temporary basis shortly after the call.

About Q2 Holdings, Inc.

Q2 Holdings, Inc. (Q2) is a leading provider of secure, cloud-based digital banking solutions headquartered in Austin, Texas. Q2 is driven by a culture of partnership and dedication to empowering community-focused banks and credit unions with digital banking solutions that help them stand apart, scale smart and grow beyond with retail and commercial account holders. Q2’s solutions are designed to deliver a compelling, secure and consistent user experience on any device and enable customers to improve account holder retention and to create incremental sales opportunities. To learn more about Q2, visit www.q2ebanking.com.

Use of Non-GAAP Measures

Q2 uses the following non-GAAP financial measures: adjusted EBITDA; non-GAAP gross margin; non-GAAP gross profit; non-GAAP sales and marketing expense; non-GAAP research and development expense; non-GAAP general and administrative expense; non-GAAP operating loss; and, non-GAAP net loss. Management believes that these non-GAAP financial measures are useful measures of operating performance because they exclude items that Q2 does not consider indicative of its core performance.

In the case of adjusted EBITDA, Q2 adjusts net loss for such things as interest, taxes, depreciation and amortization, stock-based compensation, acquisition-related costs, amortization of technology and intangibles, and unoccupied lease charges. In the case of non-GAAP gross margin and non-GAAP gross profit, Q2 adjusts gross profit and gross margin for stock-based compensation and amortization of acquired technology. In the case of non-GAAP sales and marketing expense, non-GAAP research and development expense, and non-GAAP general and administrative expense, Q2 adjusts the corresponding GAAP expense to exclude stock-based compensation. In the case of non-GAAP operating loss and non-GAAP net loss, Q2 adjusts operating loss and net loss, respectively, for stock-based compensation, acquisition related-costs, amortization of acquired technology, amortization of acquired intangibles, and unoccupied lease charges.

These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, the closest GAAP measures, or other financial measures prepared in accordance with GAAP. A reconciliation to the closest GAAP measures of these non-GAAP measures is contained in tabular form on the attached unaudited condensed consolidated financial statements.

Q2’s management uses these non-GAAP measures as measures of operating performance; to prepare Q2’s annual operating budget; to allocate resources to enhance the financial performance of Q2’s business; to evaluate the effectiveness of Q2’s business strategies; to provide consistency and comparability with past financial performance; to facilitate a comparison of Q2’s results with those of other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results; and in communication with our board of directors concerning Q2’s financial performance.




Forward-looking Statements
This press release contains forward-looking statements, including statements about positive sales momentum, increased purchasing activity among credit unions and banks, optimism about our Tier 1 pipeline, and Q2’s quarterly and annual financial guidance. The forward-looking statements contained in this press release are based upon Q2’s historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates or expectations will be achieved. Factors that could cause actual results to differ materially from those described herein include risks related to: (a) the risk of increased competition in its existing markets and as it enters new sections of the market with Tier 1 customers and new products and services; (b) the risk that the market for Q2’s solutions does not grow as anticipated, in particular with respect to Tier 1 customers; (c) the risk that Q2’s increased focus on selling to larger Tier 1 customers may result in greater uncertainty and variability in Q2’s business and sales results; (d) the risk that changes in Q2’s market, business or sales organization negatively impacts its ability to sell its products and services; (e) the challenges and costs associated with selling, implementing and supporting Q2’s solutions, particularly for larger customers with more complex requirements and longer implementation processes; (f) the risk that errors, interruptions or delays in Q2’s products or services or Web hosting negatively impacts Q2’s business and sales; (g) risks associated with data breaches and breaches of security measures within Q2’s products, systems and infrastructure and the resultant harm to Q2’s business and its ability to sell its products and services; (h) the impact that a slowdown in the economy, financial markets, and credit markets has on Q2’s customers and Q2’s business sales cycles, prospects and customers’ spending decisions and timing of implementation decisions, particularly in regions where a significant number of Q2’s customers are concentrated; (i) the difficulties and risks associated with developing and selling complex new solutions and enhancements with the technical and regulatory specifications and functionality required by customers and governmental authorities; (j) the risks inherent in technology and implementation partnerships that could cause harm to Q2’s business; (k) the difficulties and costs Q2 may encounter with complex implementations of its solutions and the resulting impact on reputation and the timing of its revenue from any delayed implementations; (l) the risk that Q2 will not be able to maintain historical contract terms such as pricing and duration; (m) the risks associated with managing growth and the challenges associated with improving operations and hiring, retaining and motivating employees to support such growth; (n) the risk that modifications or negotiations of contractual arrangements will be necessary during Q2’s implementations of its solutions or the general risks associated with the complexity of Q2’s customer arrangements; (o) the risks associated with integrating acquired companies and successfully selling and maintaining their solutions; (p) litigation related to intellectual property and other matters and any related claims, negotiations and settlements; and (q) the risks associated with further consolidation in the financial services industry.
Additional information relating to the uncertainty affecting the Q2 business are contained in Q2’s filings with the Securities and Exchange Commission. These documents are available on the SEC Filings section of the Investor Services section of Q2’s website at http://investors.q2ebanking.com/. These forward-looking statements represent Q2’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Q2 disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.



Q2 Holdings, Inc.
Condensed Consolidated Balance Sheets
(in thousands)

 
 
June 30, 2017
 
December 31, 2016
 
 
(unaudited)
 
(unaudited)
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
34,471

 
$
54,873

Restricted cash
 
2,915

 
1,315

Investments
 
44,185

 
42,249

Accounts receivable, net
 
15,012

 
12,240

Prepaid expenses and other current assets
 
4,074

 
3,215

Deferred solution and other costs, current portion
 
8,182

 
8,839

Deferred implementation costs, current portion
 
3,400

 
2,938

Total current assets
 
112,239

 
125,669

Property and equipment, net
 
31,565

 
27,480

Deferred solution and other costs, net of current portion
 
13,213

 
11,125

Deferred implementation costs, net of current portion
 
8,276

 
8,096

Intangible assets, net
 
14,718

 
15,208

Goodwill
 
12,876

 
12,876

Other long-term assets
 
513

 
526

Total assets
 
$
193,400

 
$
200,980

 
 
 
 
 
Liabilities and stockholders' equity
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable and accrued liabilities
 
$
19,900

 
$
29,088

Deferred revenues, current portion
 
32,057

 
30,123

Total current liabilities
 
51,957

 
59,211

Deferred revenues, net of current portion
 
30,500

 
31,707

Deferred rent, net of current portion
 
10,010

 
9,466

Other long-term liabilities
 
586

 
361

Total liabilities
 
93,053

 
100,745

Stockholders' equity:
 
 
 
 
Common stock
 
4

 
4

Treasury stock
 
(597
)
 
(417
)
Additional paid-in capital
 
241,835

 
226,485

Accumulated other comprehensive loss
 
(84
)
 
(54
)
Accumulated deficit
 
(140,811
)
 
(125,783
)
Total stockholders' equity
 
100,347

 
100,235

Total liabilities and stockholders' equity
 
$
193,400

 
$
200,980



Q2 Holdings, Inc.
Condensed Consolidated Statements of Comprehensive Loss
(in thousands, except per share data)

 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2017
 
2016
 
2017
 
2016
 
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
 
 
 
 
 
 
 
 
Revenues
 
$
47,625

 
$
36,005

 
$
92,159

 
$
69,764

Cost of revenues (1) (2)
 
24,328

 
18,870

 
47,100

 
36,684

Gross profit
 
23,297

 
17,135

 
45,059

 
33,080

 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
Sales and marketing (1)
 
11,096

 
9,611

 
20,974

 
17,818

Research and development (1)
 
9,922

 
7,830

 
19,573

 
15,733

General and administrative (1)
 
9,268

 
7,437

 
17,720

 
14,858

Acquisition related costs
 
351

 
1,476

 
699

 
2,958

Amortization of acquired intangibles
 
373

 
368

 
744

 
736

Unoccupied lease charges
 
—

 
33

 
—

 
33

Total operating expenses
 
31,010

 
26,755


59,710


52,136

Loss from operations
 
(7,713
)
 
(9,620
)

(14,651
)

(19,056
)
Other income (expense), net
 
109

 
(85
)
 
143

 
(71
)
Loss before income taxes
 
(7,604
)
 
(9,705
)

(14,508
)

(19,127
)
Provision for income taxes
 
(217
)
 
(3
)
 
(353
)
 
(233
)
Net Loss
 
$
(7,821
)
 
$
(9,708
)

$
(14,861
)

$
(19,360
)
Other comprehensive loss
 
 
 
 
 
 
 
 
Unrealized gain (loss) on available-for-sale investments
 
(29
)
 
16

 
(30
)
 
105

Comprehensive loss
 
$
(7,850
)
 
$
(9,692
)
 
$
(14,891
)
 
$
(19,255
)
 
 
 
 
 
 
 
 
 
Net loss per common share:
 
 
 
 




Net loss per common share, basic and diluted
 
$
(0.19
)
 
$
(0.25
)

$
(0.36
)

$
(0.49
)
Weighted average common shares outstanding, basic and diluted
 
41,064

 
39,434

 
40,848

 
39,229


(1) 
Includes stock-based compensation expenses as follows:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2017
 
2016
 
2017
 
2016
Cost of revenues
 
$
819

 
$
455

 
$
1,543

 
$
861

Sales and marketing
 
812

 
492

 
1,443

 
927

Research and development
 
1,033

 
652

 
1,978

 
1,284

General and administrative
 
2,358

 
1,258

 
4,255

 
2,390

Total stock-based compensation expenses
 
$
5,022

 
$
2,857


$
9,219


$
5,462


(2) 
Includes amortization of acquired technology of $0.9 million and $0.8 million for the three months ended June 30, 2017 and 2016, respectively, and $1.8 million and $1.6 million for the six months ended June 30, 2017 and 2016, respectively.




Q2 Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)

 
 
Six Months Ended June 30,
 
 
2017
 
2016
 
 
(unaudited)
 
(unaudited)
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
Net loss
 
$
(14,861
)
 
$
(19,360
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
Amortization of deferred implementation, solution and other costs
 
3,514

 
3,192

Depreciation and amortization
 
7,227

 
5,871

Amortization of debt issuance costs
 
28

 
48

Amortization of premiums on investments
 
151

 
221

Stock-based compensation expenses
 
9,219

 
5,462

Deferred income taxes
 
234

 
139

Other non-cash charges
 
38

 
178

Changes in operating assets and liabilities
 
(15,810
)
 
1,860

Cash used in operating activities
 
(10,260
)
 
(2,389
)
Cash flows from investing activities:
 
 
 
 
Net redemptions (purchases) of investments
 
(2,119
)
 
341

Purchases of property and equipment
 
(7,625
)
 
(8,745
)
Business combinations and asset acquisitions, net of cash acquired
 
(3,816
)
 
(95
)
Capitalization of software development costs
 
(762
)
 
(1,190
)
Purchases of intangible assets
 
—

 
(138
)
     Increase in restricted cash
 
(1,600
)
 
—

Cash used in investing activities
 
(15,922
)
 
(9,827
)
Cash flows from financing activities:
 
 
 
 
Payments on financing obligations and capital leases, net
 
—

 
(5,051
)
Proceeds from issuance of common stock
 
5,780

 
2,744

Net cash provided by (used in) financing activities
 
5,780

 
(2,307
)
Net decrease in cash and cash equivalents
 
(20,402
)
 
(14,523
)
Cash and cash equivalents, beginning of period
 
54,873

 
67,049

Cash and cash equivalents, end of period
 
$
34,471

 
$
52,526




Q2 Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(in thousands)
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2017
 
2016
 
2017
 
2016
 
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
GAAP gross profit
 
$
23,297

 
$
17,135

 
$
45,059

 
$
33,080

Stock-based compensation
 
819

 
455

 
1,543

 
861

Amortization of acquired technology
 
912

 
797

 
1,798

 
1,595

Non-GAAP gross profit
 
$
25,028

 
$
18,387


$
48,400


$
35,536

 
 
 
 
 
 
 
 
 
Non-GAAP gross margin:
 
 
 
 
 
 
 
 
Non-GAAP gross profit
 
$
25,028

 
$
18,387

 
$
48,400

 
$
35,536

GAAP revenue
 
47,625

 
36,005

 
92,159

 
69,764

Non-GAAP gross margin
 
52.6
%
 
51.1
%

52.5
%

50.9
%
 
 
 
 
 
 
 
 
 
GAAP sales and marketing expense
 
$
11,096

 
$
9,611

 
$
20,974

 
$
17,818

Stock-based compensation
 
(812
)
 
(492
)
 
(1,443
)
 
(927
)
Non-GAAP sales and marketing expense
 
$
10,284

 
$
9,119


$
19,531


$
16,891

 
 
 
 
 
 
 
 
 
GAAP research and development expense
 
$
9,922

 
$
7,830

 
$
19,573

 
$
15,733

Stock-based compensation
 
(1,033
)
 
(652
)
 
(1,978
)
 
(1,284
)
Non-GAAP research and development expense
 
$
8,889

 
$
7,178


$
17,595


$
14,449

 
 
 
 
 
 
 
 
 
GAAP general and administrative expense
 
$
9,268

 
$
7,437

 
$
17,720

 
$
14,858

Stock-based compensation
 
(2,358
)
 
(1,258
)
 
(4,255
)
 
(2,390
)
Non-GAAP general and administrative expense
 
$
6,910

 
$
6,179


$
13,465


$
12,468

 
 
 
 
 
 
 
 
 
GAAP operating loss
 
$
(7,713
)
 
$
(9,620
)
 
$
(14,651
)
 
$
(19,056
)
Stock-based compensation
 
5,022

 
2,857

 
9,219

 
5,462

Acquisition related costs
 
351

 
1,476

 
699

 
2,958

Amortization of acquired technology
 
912

 
797

 
1,798

 
1,595

Amortization of acquired intangibles
 
373

 
368

 
744

 
736

Unoccupied lease charges
 
—

 
33

 
—

 
33

Non-GAAP operating loss
 
$
(1,055
)
 
$
(4,089
)

$
(2,191
)

$
(8,272
)
 
 
 
 
 
 
 
 
 
GAAP net loss
 
$
(7,821
)
 
$
(9,708
)
 
$
(14,861
)
 
$
(19,360
)
Stock-based compensation
 
5,022

 
2,857

 
9,219

 
5,462

Acquisition related costs
 
351

 
1,476

 
699

 
2,958

Amortization of acquired technology
 
912

 
797

 
1,798

 
1,595

Amortization of acquired intangibles
 
373

 
368

 
744

 
736

Unoccupied lease charges
 
—

 
33

 
—

 
33

Non-GAAP net loss
 
$
(1,163
)
 
$
(4,177
)

$
(2,401
)

$
(8,576
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP net loss to adjusted EBITDA:
 
 
 
 
 
 
 
 
GAAP net loss
 
$
(7,821
)
 
$
(9,708
)
 
$
(14,861
)
 
$
(19,360
)
Depreciation and amortization
 
3,702

 
2,944

 
7,227

 
5,871

Stock-based compensation
 
5,022

 
2,857

 
9,219

 
5,462

Provision for income taxes
 
217

 
3

 
353

 
233

Interest (income) expense, net
 
(109
)
 
85

 
(143
)
 
71

Acquisition related costs
 
351

 
1,476

 
699

 
2,958

Unoccupied lease charges
 
—

 
33

 
—

 
33

Adjusted EBITDA
 
$
1,362

 
$
(2,310
)

$
2,494


$
(4,732
)


MEDIA CONTACT:
 
INVESTOR CONTACT:
Emma Chase
 
Bob Gujavarty
Red Fan Communications
 
Q2 Holdings, Inc.
O: (512) 551-9253 / C: (512) 917-4319
 
O: (512) 439-3447
emma@redfancommunications.com
 
bobby.gujavarty@q2ebanking.com


###