Q2 Holdings (NYSE: QTWO) reported Q3 EPS of $0.07, $0.01 better than the analyst estimate of $0.06. Revenue for the quarter came in at $104.8 million versus the consensus estimate of $103.19 million.

Non-GAAP Results for the Third Quarter 2020

• Non-GAAP revenue for the third quarter of $104.8 million, up 31 percent year-over-year and up 6 percent from the second quarter of 2020.
• Non-GAAP gross margin for the third quarter of 52.5 percent, down from 53.6 percent for the prior-year quarter and 53.9 percent for the second quarter of 2020.
• Adjusted EBITDA for the third quarter of $8.1 million, compared to $5.6 million for the prior-year quarter and $8.1 million for the second quarter of 2020.

For a reconciliation of our GAAP to non-GAAP results, please see the tables below.

“We had a solid quarter across the business, highlighted by delivering new customers to the platform and expansion of our relationships with existing customers,” said Matt Flake, Q2 CEO. “We’re continuing to see the cross-pollination effect in our portfolio generate high demand as customers look to improve existing experiences and leverage the benefits provided from our comprehensive suite of solutions. As we approach the end of the year and enter 2021, I’m optimistic that the sales environment will begin returning to normal and our highly differentiated portfolio positions us favorably for continued execution.”

“We are pleased to have delivered third quarter results which exceeded the high end of our non-GAAP revenue and adjusted EBITDA guidance,” said Jennifer Harris, Q2 CFO. “The revenue and adjusted EBITDA achievement was driven primarily through new customer go-lives, where we had a record number of new digital banking go-lives for a quarter. As anticipated, we observed a decline in gross margin from the second quarter of 2020 due in large part to the reduction in success-based fees derived from our PPP solutions, which were primarily limited to the prior quarter.”

GUIDANCE:

Q2 Holdings sees Q4 2020 revenue of $105-107 million, versus the consensus of $105.89 million.

Q2 Holdings sees FY2020 revenue of $402.5-404.5 million, versus the consensus of $401.67 million.

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