Q2 Holdings (NYSE: QTWO) reported Q3 EPS of $0.03, $0.06 better than the analyst estimate of ($0.03). Revenue for the quarter came in at $50.1 million versus the consensus estimate of $50.04 million.

Financial Outlook

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

• Total revenue of $51.4 to $51.8 million, which would represent year-over-year growth of 22 to 23 percent.
• Adjusted EBITDA of positive $3.3 million to $3.7 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 $193.6 to $194 million, which would represent year-over-year growth of 29 percent.
• Adjusted EBITDA of positive $9.4 million to $9.8 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.

Third Quarter 2017 Results

• Revenue for the third quarter of $50.1 million, up 31 percent year-over-year and up 5 percent sequentially.
• GAAP gross margin for the third quarter of 48.5 percent, down from 48.8 percent one year ago. Non-GAAP gross margin for the third quarter of 52.3 percent, flat with 52.3 percent one year ago.
• GAAP net loss for the third quarter of $5.8 million, which compares to a GAAP net loss of $9.5 million for the third quarter of 2016. Adjusted EBITDA for the third quarter of positive $3.6 million, an improvement from negative $1.1 million one year ago.

GUIDANCE:

Q2 Holdings sees FY2017 revenue of $193.6-194 million, versus the consensus of $194.76 million.

For earnings history and earnings-related data on Q2 Holdings (QTWO) click here.