Q2 Holdings (NYSE: QTWO) reported Q1 EPS of ($0.09), $0.03 better than the analyst estimate of ($0.12). Revenue for the quarter came in at $93.8 million versus the consensus estimate of $92.99 million.

Non-GAAP Results for the First Quarter 2020

• Non-GAAP revenue for the first quarter of $93.8 million, up 32 percent year-over-year and up 6 percent from the previous quarter.
• Non-GAAP gross margin for the first quarter of 53.1 percent, up from 52.3 percent for the prior-year quarter and down from 56.8 percent for the fourth quarter of 2019.
• Adjusted EBITDA for the first quarter of negative $0.1 million, compared to $0.3 million for the prior-year quarter and $10.6 million for the fourth quarter of 2019.

“Over the past 90 days, we have been carefully monitoring and assessing the effects of COVID-19, with our top priority being to protect the health and safety of our employees, our customers and our partners and suppliers. As our customers shift their near-term focus to ensuring business continuity and providing immediate support to the communities they serve, we are aligning our resources to correspond with those objectives and are continuing to strategically invest across our organization to position us to increase revenues and to improve operating efficiencies over the longer term. We are handling record login volumes as our customers have played a pivotal role in the disbursement of funds to both consumers and small businesses as a part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. We believe that although the COVID-19 pandemic creates significant risks and uncertainties for our clients, their customers, our partners and suppliers, our employees and our business generally, it also could accelerate the transition to digital financial solutions and that our portfolio of digital financial services solutions and our position and reputation in the market provide us with an opportunity to continue to serve clients and grow our business.

“I am encouraged by how our employees and customers have responded to the crisis thus far, and we will continue to navigate these unprecedented challenges together,” said Matt Flake, CEO of Q2.

GUIDANCE:

Q2 Holdings sees Q2 2020 revenue of $94-96 million, versus the consensus of $100.49 million.

Q2 Holdings sees FY2020 revenue of $393-400 million, versus the consensus of $409.34 million.

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