Austin-based Q2 Holdings saw its stock surge Monday after the software maker reported first quarter results that beat Wall Street expectation and projected strong revenue growth for the remainder of the year.
Q2 Holdings, which provides electronic banking services to banks and credit unions, said its revenue was $33.8 million for the quarter ended March 31, a 40 percent increase over the same quarter the previous year. That also topped Wall Street projections, as four analysts surveyed by Zacks Investment Research expected revenue of $33.1 million.
Q2 Holdings reported a net loss for the quarter of $9.7 million. Adjusted for stock option expense and costs related to mergers and acquisitions, that came to a loss of 11 cents per share, the company said. The average estimate of six analysts surveyed by Zacks had been for a loss of 13 cents per share.
The company’s shares jumped following the earnings report’s release, rising more than 6.8 percent to $23.78 in midday trading on Monday.
Credit: handout
Credit: handout
“The first quarter was a great start to the year,” Matt Flake, president and CEO of Q2 Holdings, said in a written statement. “Our implementations team continues to execute at a high level, with quality deliveries of the platform that are on time and on budget. On the sales side, we saw record cross-sales in what is typically a seasonally slow quarter, and I’m encouraged by our customers’ desire to continue expanding their offerings with us."
For the current quarter ending, Q2 Holdings said it expects revenue in the range of $35.3 million to $35.7 million, which would be 34 percent to 36 percent higher than the same quarter last year.
The company said it expects full-year revenue in the range of $146 million to $148.4 million, which would also be a year over year increase of 34 percent to 36 percent.
Software sold by Q2 Holdings allows a bank's customers to do anything that they would do at a brick-and-mortar bank. That allows smaller banks to compete with the largest players.
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