Form 8-K Q2 Holdings, Inc. For: Feb 13
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): February 13, 2019
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 February 13, 2019, Q2 Holdings, Inc. (the “Company”) issued a press release regarding its financial results for the fourth quarter and fiscal year ended December 31, 2018. 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 | |||
Press release dated February 13, 2019 | ||||
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. | |
February 13, 2019 | /s/ Jennifer N. Harris Jennifer N. Harris Chief Financial Officer |
Exhibit 99.1
Q2 Holdings, Inc. Announces Fourth Quarter and Full-Year 2018 Financial Results
Total fourth quarter revenue of $67.2 million, up 30 percent year-over-year, and full-year revenue of $241.1 million, up 24 percent year-over-year
AUSTIN, Texas (Feb. 13, 2019)-Q2 Holdings, Inc. (NYSE: QTWO), a leading provider of digital banking and lending solutions, today announced results for its fourth quarter and full year ending Dec. 31, 2018.
Fourth Quarter and Full-Year 2018 Results
• | Revenue for the fourth quarter of $67.2 million, up 30 percent year-over-year and full-year revenue of $241.1 million, up 24 percent year-over-year. |
• | GAAP gross margin for the fourth quarter of 47.3 percent, down from 48.6 percent one year ago. Non-GAAP gross margin for the fourth quarter of 52.0 percent, down from 52.7 percent one year ago. GAAP gross margin for the full year of 49.5 percent, up from 48.7 percent in 2017. Full-year non-GAAP gross margin of 53.3 percent, up from 52.5 percent in 2017. |
• | GAAP net loss for the fourth quarter of $11.9 million, which compares to $5.5 million for the fourth quarter of 2017, and $8.9 million for the third quarter of 2018. GAAP net loss for the full year 2018 of $35.4 million, which compares to $26.2 million for the full year 2017. Adjusted EBITDA for the fourth quarter of $3.1 million, down from $4.1 million one year ago and down from $5.7 million for the third quarter of 2018. Full-year adjusted EBITDA of $19.0 million compared to $10.2 million in 2017. |
“The fourth quarter was a strong finish to a great year for Q2,” said Matt Flake, CEO of Q2. “A favorable economic environment supported record bookings for the platform business. We also meaningfully expanded our total addressable market through the acquisitions of Cloud Lending, a comprehensive lending and leasing platform, and Gro, a digital sales and onboarding solution. The strength of our platform business combined with an expanded product offering gives me confidence we are poised to deliver accelerated revenue growth in 2019.”
Fourth Quarter Highlights
• | Signed a $30 billion bank in the Midwest to our retail and small business solution and a $9 billion bank in the Northeast for our retail, small business and corporate solutions. |
• | Cloud Lending signed a $25 billion bank in the Northeast and a leading independent leasing company in the United States. |
• | Q2 Open signed six deals including a Top 5 credit union for Q2’s CardSwap product. |
• | Exited the fourth quarter with approximately 12.8 million registered users on the Q2 platform, representing 4 percent sequential and 23 percent year-over-year growth. |
Financial Outlook
Q2 Holdings is providing guidance for its first quarter 2019 as follows:
• | Total revenue of $70 million to $71 million, which would represent year-over-year growth of 28 percent to 30 percent. |
• | Adjusted EBITDA of positive $1.2 million to positive $1.8 million. GAAP net loss is the most comparable GAAP measure to adjusted EBITDA. Adjusted EBITDA differs from GAAP net loss in that it excludes things such as depreciation and amortization, stock based compensation, acquisition-related costs, interest, income taxes and unoccupied lease charges. 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 2019 as follows:
• | Total revenue of $305 million to $309 million, which would represent year-over-year growth of 27 percent to 28 percent. |
• | Adjusted EBITDA of positive $20 million to positive $22 million. Adjusted EBITDA differs from GAAP net loss in that it excludes things such as depreciation and amortization, stock based compensation, acquisition-related costs, interest, income taxes and unoccupied lease charges. 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: | Feb. 14, 2019 |
Time: | 8:30 a.m. EST |
Hosts: | Matt Flake, CEO / Jennifer Harris, CFO |
Dial in: | US toll free: 1-833-241-4254 |
International: 1-647-689-4205 | |
Conference ID: | 8697209 |
Please join the conference call at least 10 minutes early to ensure the line is connected. A live webcast of the conference call and financial results will be accessible from the investor relations section of the Q2 website at http://investors.q2ebanking.com/.
An archived replay of the webcast will be available at this website on a temporary basis shortly after the call.
About Q2 Holdings, Inc.
Q2, a financial experience company headquartered in Austin, Texas, builds stronger communities by strengthening the financial institutions that serve them. We empower banks, credit unions and other financial services providers to be the ever-present companion on an account holder’s financial journey-helping our customers unlock new opportunities, grow their businesses and improve efficiencies. 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 Q2’s expanded addressable market as a result of acquisitions, the strength of Q2’s platform business, Q2’s expanded product offerings, positive sales and bookings momentum, optimism about Q2’s performance in 2019, Q2’s ability to accelerate revenue growth in 2019, 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, new markets with Alt-FIs and FinTechs 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 and Alt-FI and FinTech 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; (q) the risks associated with further consolidation in the financial services industry; and (r) risks associated with selling our solutions internationally.
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 Relations 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)
December 31, 2018 | December 31, 2017 | |||||||
(unaudited) | (unaudited) | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 108,341 | $ | 57,961 | ||||
Restricted cash | 1,815 | 2,315 | ||||||
Investments | 68,979 | 41,685 | ||||||
Accounts receivable, net | 19,668 | 13,203 | ||||||
Contract assets, current portion | 598 | — | ||||||
Prepaid expenses and other current assets | 3,983 | 3,115 | ||||||
Deferred solution and other costs, current portion | 10,501 | 9,246 | ||||||
Deferred implementation costs, current portion | 4,427 | 3,562 | ||||||
Total current assets | 218,312 | 131,087 | ||||||
Property and equipment, net | 34,994 | 34,544 | ||||||
Deferred solution and other costs, net of current portion | 16,761 | 12,973 | ||||||
Deferred implementation costs, net of current portion | 9,948 | 8,295 | ||||||
Intangible assets, net | 63,296 | 12,034 | ||||||
Goodwill | 107,907 | 12,876 | ||||||
Contract assets, net of current portion | 10,272 | — | ||||||
Other long-term assets | 2,230 | 1,006 | ||||||
Total assets | $ | 463,720 | $ | 212,815 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | 9,169 | 7,621 | ||||||
Accrued liabilities | 9,329 | 10,562 | ||||||
Accrued compensation | 12,652 | 11,511 | ||||||
Deferred revenues, current portion | 42,531 | 38,379 | ||||||
Total current liabilities | 73,681 | 68,073 | ||||||
Convertible notes, net of current portion | 182,723 | — | ||||||
Deferred revenue, net of current portion | 23,063 | 28,289 | ||||||
Deferred rent, net of current portion | 8,151 | 9,393 | ||||||
Other long-term liabilities | 17,202 | 438 | ||||||
Total liabilities | 304,820 | 106,193 | ||||||
Stockholders' equity: | ||||||||
Common stock | 4 | 4 | ||||||
Treasury stock | — | (855 | ) | |||||
Additional paid-in capital | 331,355 | 259,726 | ||||||
Accumulated other comprehensive loss | (37 | ) | (139 | ) | ||||
Accumulated deficit | (172,422 | ) | (152,114 | ) | ||||
Total stockholders' equity | 158,900 | 106,622 | ||||||
Total liabilities and stockholders' equity | $ | 463,720 | $ | 212,815 | ||||
Q2 Holdings, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except per share data)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
Revenues | $ | 67,177 | $ | 51,703 | $ | 241,100 | $ | 193,978 | ||||||||
Cost of revenues (1) (2) | 35,435 | 26,572 | 121,855 | 99,485 | ||||||||||||
Gross profit | 31,742 | 25,131 | 119,245 | 94,493 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing (1) | 13,583 | 10,292 | 48,124 | 41,170 | ||||||||||||
Research and development (1) | 15,517 | 10,673 | 51,334 | 40,338 | ||||||||||||
General and administrative (1) | 12,659 | 9,863 | 44,990 | 37,179 | ||||||||||||
Acquisition related costs | 1,820 | 263 | 4,145 | 1,232 | ||||||||||||
Amortization of acquired intangibles | 857 | 368 | 1,844 | 1,481 | ||||||||||||
Unoccupied lease charges (3) | — | — | 658 | — | ||||||||||||
Total operating expenses | 44,436 | 31,459 | 151,095 | 121,400 | ||||||||||||
Loss from operations | (12,694 | ) | (6,328 | ) | (31,850 | ) | (26,907 | ) | ||||||||
Other income (expense), net: | (2,345 | ) | 137 | (7,350 | ) | 429 | ||||||||||
Loss before income taxes | (15,039 | ) | (6,191 | ) | (39,200 | ) | (26,478 | ) | ||||||||
Benefit from income taxes | 3,176 | 670 | 3,803 | 314 | ||||||||||||
Net Loss | $ | (11,863 | ) | $ | (5,521 | ) | $ | (35,397 | ) | $ | (26,164 | ) | ||||
Other comprehensive gain (loss): | ||||||||||||||||
Unrealized gain (loss) on available-for-sale investments | (32 | ) | (41 | ) | 24 | (85 | ) | |||||||||
Foreign currency translation adjustment | 78 | — | 78 | — | ||||||||||||
Comprehensive loss | $ | (11,817 | ) | $ | (5,562 | ) | $ | (35,295 | ) | $ | (26,249 | ) | ||||
Net loss per common share: | ||||||||||||||||
Net loss per common share, basic and diluted | $ | (0.27 | ) | $ | (0.13 | ) | $ | (0.83 | ) | $ | (0.63 | ) | ||||
Weighted average common shares outstanding, basic and diluted | 43,429 | 41,777 | 42,797 | 41,218 | ||||||||||||
(1) | Includes stock-based compensation expenses as follows: |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Cost of revenues | $ | 1,453 | $ | 1,203 | $ | 4,773 | $ | 3,729 | ||||||||
Sales and marketing | 1,709 | 1,101 | 5,837 | 3,243 | ||||||||||||
Research and development | 2,172 | 1,337 | 6,852 | 4,464 | ||||||||||||
General and administrative | 3,289 | 2,672 | 11,758 | 9,503 | ||||||||||||
Total stock-based compensation expenses | $ | 8,623 | $ | 6,313 | $ | 29,220 | $ | 20,939 | ||||||||
(2) | Includes amortization of acquired technology of $1.7 million and $0.9 million for the three months ended December 31, 2018 and 2017, respectively, and $4.5 million and $3.6 million for the twelve months ended December 31, 2018 and 2017, respectively. |
(3) | Unoccupied lease charges include costs related to the early exit from a portion of our south Austin facility, partially offset by anticipated sublease income from that facility. |
Q2 Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
Twelve Months Ended December 31, | ||||||||
2018 | 2017 | |||||||
(unaudited) | (unaudited) | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (35,397 | ) | $ | (26,164 | ) | ||
Adjustments to reconcile net loss to net cash | ||||||||
provided by operating activities: | ||||||||
Amortization of deferred implementation, solution and other costs | 8,448 | 7,455 | ||||||
Depreciation and amortization | 16,802 | 14,946 | ||||||
Amortization of debt issuance costs | 829 | 28 | ||||||
Amortization of debt discount | 7,646 | — | ||||||
Amortization of premiums on investments | (3 | ) | 319 | |||||
Stock-based compensation expenses | 29,545 | 20,939 | ||||||
Deferred income taxes | (2,050 | ) | (350 | ) | ||||
Other non-cash charges | 553 | 30 | ||||||
Changes in operating assets and liabilities | (21,778 | ) | (7,731 | ) | ||||
Cash provided by operating activities | 4,595 | 9,472 | ||||||
Cash flows from investing activities: | ||||||||
Net redemptions of investments | (27,267 | ) | 158 | |||||
Purchases of property and equipment | (13,285 | ) | (12,315 | ) | ||||
Business combinations and asset acquisitions, net of cash acquired | (130,694 | ) | (3,816 | ) | ||||
Purchases of intangible assets | (46 | ) | — | |||||
Capitalization of software development costs | — | (970 | ) | |||||
Cash used in investing activities | (171,292 | ) | (16,943 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of convertible notes, net of issuance costs | 223,167 | — | ||||||
Purchase of convertible notes bond hedge | (41,699 | ) | — | |||||
Proceeds from issuance of warrants | 22,379 | — | ||||||
Proceeds from exercise of stock options to purchase common stock | 12,730 | 11,559 | ||||||
Net cash provided by financing activities | 216,577 | 11,559 | ||||||
Net increase in cash, cash equivalents, and restricted cash | 49,880 | 4,088 | ||||||
Cash, cash equivalents, and restricted cash, beginning of period | 60,276 | 56,188 | ||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 110,156 | $ | 60,276 | ||||
Q2 Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(in thousands, except per share data)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
GAAP gross profit | $ | 31,742 | $ | 25,131 | $ | 119,245 | $ | 94,493 | ||||||||
Stock-based compensation | 1,453 | 1,203 | 4,773 | 3,729 | ||||||||||||
Amortization of acquired technology | 1,729 | 914 | 4,465 | 3,624 | ||||||||||||
Non-GAAP gross profit | $ | 34,924 | $ | 27,248 | $ | 128,483 | $ | 101,846 | ||||||||
Non-GAAP gross margin: | ||||||||||||||||
Non-GAAP gross profit | $ | 34,924 | $ | 27,248 | $ | 128,483 | $ | 101,846 | ||||||||
GAAP revenue | 67,177 | 51,703 | 241,100 | 193,978 | ||||||||||||
Non-GAAP gross margin | 52.0 | % | 52.7 | % | 53.3 | % | 52.5 | % | ||||||||
GAAP sales and marketing expense | $ | 13,583 | $ | 10,292 | $ | 48,124 | $ | 41,170 | ||||||||
Stock-based compensation | (1,709 | ) | (1,101 | ) | (5,837 | ) | (3,243 | ) | ||||||||
Non-GAAP sales and marketing expense | $ | 11,874 | $ | 9,191 | $ | 42,287 | $ | 37,927 | ||||||||
GAAP research and development expense | $ | 15,517 | $ | 10,673 | $ | 51,334 | $ | 40,338 | ||||||||
Stock-based compensation | (2,172 | ) | (1,337 | ) | (6,852 | ) | (4,464 | ) | ||||||||
Non-GAAP research and development expense | $ | 13,345 | $ | 9,336 | $ | 44,482 | $ | 35,874 | ||||||||
GAAP general and administrative expense | $ | 12,659 | $ | 9,863 | $ | 44,990 | $ | 37,179 | ||||||||
Stock-based compensation | (3,289 | ) | (2,672 | ) | (11,758 | ) | (9,503 | ) | ||||||||
Non-GAAP general and administrative expense | $ | 9,370 | $ | 7,191 | $ | 33,232 | $ | 27,676 | ||||||||
GAAP operating loss | $ | (12,694 | ) | $ | (6,328 | ) | $ | (31,850 | ) | $ | (26,907 | ) | ||||
Stock-based compensation | 8,623 | 6,313 | 29,220 | 20,939 | ||||||||||||
Acquisition related costs | 1,820 | 263 | 4,145 | 1,232 | ||||||||||||
Amortization of acquired technology | 1,729 | 914 | 4,465 | 3,624 | ||||||||||||
Amortization of acquired intangibles | 857 | 368 | 1,844 | 1,481 | ||||||||||||
Unoccupied lease charges | — | — | 658 | — | ||||||||||||
Non-GAAP operating income | $ | 335 | $ | 1,530 | $ | 8,482 | $ | 369 | ||||||||
GAAP net loss | $ | (11,863 | ) | $ | (5,521 | ) | $ | (35,397 | ) | $ | (26,164 | ) | ||||
Stock-based compensation | 8,623 | 6,313 | 29,220 | 20,939 | ||||||||||||
Acquisition related costs | 1,820 | 263 | 4,145 | 1,232 | ||||||||||||
Amortization of acquired technology | 1,729 | 914 | 4,465 | 3,624 | ||||||||||||
Amortization of acquired intangibles | 857 | 368 | 1,844 | 1,481 | ||||||||||||
Unoccupied lease charges | — | — | 658 | — | ||||||||||||
Amortization of debt discount and issuance costs | 2,518 | — | 8,475 | — | ||||||||||||
Non-GAAP net income | $ | 3,684 | $ | 2,337 | $ | 13,410 | $ | 1,112 | ||||||||
Reconciliation from diluted weighted-average number of common shares as reported to pro forma diluted weighted average number of common shares | ||||||||||||||||
Diluted weighted-average number of common shares, as reported | 43,429 | 41,777 | 42,797 | 41,218 | ||||||||||||
Weighted-average effect of potentially dilutive shares | 1,901 | 1,976 | 2,145 | 2,064 | ||||||||||||
Pro forma diluted weighted-average number of common shares | 45,330 | 43,753 | 44,942 | 43,282 | ||||||||||||
Calculation of non-GAAP income per share: | ||||||||||||||||
Non-GAAP net income | $ | 3,684 | $ | 2,337 | $ | 13,410 | $ | 1,112 | ||||||||
Diluted weighted-average number of common shares | 45,330 | 43,753 | 44,942 | 43,282 | ||||||||||||
Non-GAAP net income per share | $ | 0.08 | $ | 0.05 | $ | 0.30 | $ | 0.03 | ||||||||
Reconciliation of GAAP net loss to adjusted EBITDA: | ||||||||||||||||
GAAP net loss | $ | (11,863 | ) | $ | (5,521 | ) | $ | (35,397 | ) | $ | (26,164 | ) | ||||
Depreciation and amortization | 5,361 | 3,897 | 16,802 | 14,946 | ||||||||||||
Stock-based compensation | 8,623 | 6,313 | 29,220 | 20,939 | ||||||||||||
(Benefit from) provision for income taxes | (3,176 | ) | (670 | ) | (3,803 | ) | (314 | ) | ||||||||
Interest (income) expense, net | 2,345 | (137 | ) | 7,350 | (429 | ) | ||||||||||
Acquisition related costs | 1,820 | 263 | 4,145 | 1,232 | ||||||||||||
Unoccupied lease charges | — | — | 658 | — | ||||||||||||
Adjusted EBITDA | $ | 3,110 | $ | 4,145 | $ | 18,975 | $ | 10,210 | ||||||||
Contacts | ||
Emma Chase
Red Fan Communications
O: (512) 551-9253 / C: (512) 917-4319
Investor Contact:
Bob Gujavarty
Q2 Holdings, Inc.
O: (512) 439-3447