Total fourth quarter revenue of $51.7 million, up 23 percent
year-over-year, and full-year revenue of $194.0 million, up 29 percent
year-over-year
AUSTIN, Texas--(BUSINESS WIRE)--
Q2
Holdings, Inc. (NYSE:QTWO), a leading provider of secure,
cloud-based digital banking solutions for community-focused financial
institutions, today announced results for its fourth quarter and full
year ending Dec. 31, 2017.
Fourth Quarter and Full-Year 2017 Results
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Revenue for the fourth quarter of $51.7 million, up 23 percent
year-over-year and full-year revenue of $194 million, up 29 percent
year-over-year.
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GAAP gross margin for the fourth quarter of 48.6 percent, down from
49.8 percent one year ago. Non-GAAP gross margin for the fourth
quarter of 52.7 percent, down from 53.2 percent one year ago. GAAP
gross margin for the full year of 48.7 percent, up from 48.5 percent
in 2016. Full-year non-GAAP gross margin of 52.5 percent, up from 51.9
percent in 2016.
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GAAP net loss for the fourth quarter of $5.5 million, which compares
to a GAAP net loss of $7.5 million for the fourth quarter of 2016, and
$5.8 million for the third quarter of 2017. GAAP net loss for the full
year of 2017 of $26.2 million, which compares to $36.4 million for the
full year 2016. Adjusted EBITDA for the fourth quarter of positive
$4.1 million, an improvement from positive $1.3 million one year ago
and positive $3.6 million for the third quarter of 2017. Full-year
adjusted EBITDA of positive $10.2 million compared to negative $4.5
million in 2016.
“We had a great finish to 2017 with record bookings in the quarter,”
said Matt Flake, CEO of Q2. “We saw a significant increase in activity
in the bank market, where an improved economic environment is
accelerating banks’ decision-making. With the addition of four Tier 1
banks in the fourth quarter and a solid pipeline entering the year, I
believe 2018 should be another strong year for Q2.”
Fourth Quarter and Full-Year 2017 Highlights
-
Posted the largest bookings quarter in company history in the fourth
quarter of 2017.
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Signed a Top 100 credit union and four Tier 1 banks in the fourth
quarter, including a $30 billion bank in the Northeast and a $15
billion bank in the Midwest.
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Signed Acorns, a savings and micro-investment platform with three
million customers, for use of the Q2 Open product suite.
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Exited the fourth quarter with approximately 10.4 million registered
users on the Q2 platform, representing 4 percent sequential and 21
percent year-over-year growth.
Financial Outlook
Q2 Holdings is providing guidance for its first quarter 2018 as follows:
-
Total revenue of $52.6 million to $53.2 million, which would represent
year-over-year growth of 18 percent to 20 percent.
-
Adjusted EBITDA of positive $1.4 million to positive $2 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 2018 as follows:
-
Total revenue of $234 million to $236 million, which would represent
year-over-year growth of 21 percent to 22 percent.
-
Adjusted EBITDA of positive $19 million to positive $21 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:
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Feb. 15, 2018
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Time:
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8:30 a.m. EST
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Hosts:
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Matt Flake, CEO / Jennifer Harris, CFO
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Dial in:
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US toll free: 1-833-241-4254
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International: 1-647-689-4205
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Conference ID:
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8194919
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Please join the conference call at least 10 minutes before start time to
ensure the line is connected. A live webcast of the conference call will
be accessible from the investor services section of the Q2 Holdings,
Inc. website at http://investors.q2ebanking.com/.
A replay of the webcast will also be available at this website on a
temporary basis shortly after the call.
About Q2 Holdings, Inc.
Q2 is a leading provider of secure, experience-driven digital banking
solutions headquartered in Austin, Texas. We are driven by a mission to
build stronger communities by strengthening their financial
institutions. Q2 provides the industry’s most comprehensive digital
banking platform, enriched through actionable data insights, open
development tools and an evolving fintech ecosystem. We help clients
elevate the experience, drive efficiency and grow faster. 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 positive sales and bookings momentum, increased
activity in the bank market and the effects of the improved economic
environment on banks’ decision-making, optimism about our pipeline and
Q2’s performance in 2018, 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 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; (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; and (q) the risks associated with
further consolidation in the financial services industry.
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 Services 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.
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Q2 Holdings, Inc.
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Condensed Consolidated Balance Sheets
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(in thousands)
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December 31,
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December 31,
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2017
|
|
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2016
|
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(unaudited)
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|
(unaudited)
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Assets
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Current assets:
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Cash and cash equivalents
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$
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57,961
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|
|
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$
|
54,873
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Restricted cash
|
|
|
|
2,315
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|
|
|
|
1,315
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Investments
|
|
|
|
41,685
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|
|
|
|
42,249
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|
Accounts receivable, net
|
|
|
|
13,203
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|
|
|
|
12,240
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Prepaid expenses and other current assets
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|
|
|
3,115
|
|
|
|
|
3,215
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|
Deferred solution and other costs, current portion
|
|
|
|
9,246
|
|
|
|
|
8,839
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|
Deferred implementation costs, current portion
|
|
|
|
3,562
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|
|
|
|
2,938
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Total current assets
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|
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|
131,087
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|
|
|
|
125,669
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Property and equipment, net
|
|
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|
34,544
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|
|
|
|
27,480
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Deferred solution and other costs, net of current portion
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|
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12,973
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|
|
|
|
11,125
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Deferred implementation costs, net of current portion
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|
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|
8,295
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|
|
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|
8,096
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Intangible assets, net
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|
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|
12,034
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|
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15,208
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Goodwill
|
|
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12,876
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|
|
|
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12,876
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Other long-term assets
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|
1,006
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|
|
|
|
526
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Total assets
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$
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212,815
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$
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200,980
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Liabilities and stockholders' equity
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Current liabilities:
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Accounts payable and accrued liabilities
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$
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29,694
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|
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$
|
29,088
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Deferred revenues, current portion
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38,379
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|
|
|
|
30,123
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Total current liabilities
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|
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|
68,073
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|
|
|
|
59,211
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Deferred revenues, net of current portion
|
|
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|
28,289
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|
|
|
|
31,707
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|
Deferred rent, net of current portion
|
|
|
|
9,393
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|
|
|
|
9,466
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|
Other long-term liabilities
|
|
|
|
438
|
|
|
|
|
361
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Total liabilities
|
|
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|
106,193
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|
|
|
|
100,745
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Stockholders' equity:
|
|
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Common stock
|
|
|
|
4
|
|
|
|
|
4
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Treasury stock
|
|
|
|
(855
|
)
|
|
|
|
(417
|
)
|
Additional paid-in capital
|
|
|
|
259,726
|
|
|
|
|
226,485
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|
Accumulated other comprehensive loss
|
|
|
|
(139
|
)
|
|
|
|
(54
|
)
|
Accumulated deficit
|
|
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|
(152,114
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)
|
|
|
|
(125,783
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)
|
Total stockholders' equity
|
|
|
|
106,622
|
|
|
|
|
100,235
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
212,815
|
|
|
|
$
|
200,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 Holdings, Inc.
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Condensed Consolidated Statements of Comprehensive Loss
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(in thousands, except per share data)
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|
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|
|
|
|
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|
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Three Months Ended December 31,
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Twelve Months Ended December 31,
|
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2017
|
|
|
2016
|
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|
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2017
|
|
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2016
|
|
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|
(unaudited)
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|
|
(unaudited)
|
|
|
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(unaudited)
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(unaudited)
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|
|
|
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|
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|
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|
|
|
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Revenues
|
|
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$
|
51,703
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|
|
|
$
|
42,155
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|
|
|
|
$
|
193,978
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|
|
|
$
|
150,224
|
|
Cost of revenues (1) (2)
|
|
|
|
26,572
|
|
|
|
|
21,146
|
|
|
|
|
|
99,485
|
|
|
|
|
77,429
|
|
Gross profit
|
|
|
|
25,131
|
|
|
|
|
21,009
|
|
|
|
|
|
94,493
|
|
|
|
|
72,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing (1)
|
|
|
|
10,292
|
|
|
|
|
9,486
|
|
|
|
|
|
41,170
|
|
|
|
|
36,284
|
|
Research and development (1)
|
|
|
|
10,673
|
|
|
|
|
8,508
|
|
|
|
|
|
40,338
|
|
|
|
|
32,460
|
|
General and administrative (1)
|
|
|
|
9,863
|
|
|
|
|
8,477
|
|
|
|
|
|
37,179
|
|
|
|
|
31,959
|
|
Acquisition related costs
|
|
|
|
263
|
|
|
|
|
1,514
|
|
|
|
|
|
1,232
|
|
|
|
|
6,307
|
|
Amortization of acquired intangibles
|
|
|
|
368
|
|
|
|
|
366
|
|
|
|
|
|
1,481
|
|
|
|
|
1,470
|
|
Unoccupied lease charges
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
33
|
|
Total operating expenses
|
|
|
|
31,459
|
|
|
|
|
28,351
|
|
|
|
|
|
121,400
|
|
|
|
|
108,513
|
|
Loss from operations
|
|
|
|
(6,328
|
)
|
|
|
|
(7,342
|
)
|
|
|
|
|
(26,907
|
)
|
|
|
|
(35,718
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)
|
Other income (expense), net
|
|
|
|
137
|
|
|
|
|
(74
|
)
|
|
|
|
|
429
|
|
|
|
|
(209
|
)
|
Loss before income taxes
|
|
|
|
(6,191
|
)
|
|
|
|
(7,416
|
)
|
|
|
|
|
(26,478
|
)
|
|
|
|
(35,927
|
)
|
Benefit from (provision for) income taxes
|
|
|
|
670
|
|
|
|
|
(97
|
)
|
|
|
|
|
314
|
|
|
|
|
(427
|
)
|
Net loss
|
|
|
$
|
(5,521
|
)
|
|
|
$
|
(7,513
|
)
|
|
|
|
$
|
(26,164
|
)
|
|
|
$
|
(36,354
|
)
|
Other comprehensive gain (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on available-for-sale investments
|
|
|
|
(70
|
)
|
|
|
|
(41
|
)
|
|
|
|
|
(85
|
)
|
|
|
|
47
|
|
Comprehensive loss
|
|
|
$
|
(5,591
|
)
|
|
|
$
|
(7,554
|
)
|
|
|
|
$
|
(26,249
|
)
|
|
|
$
|
(36,307
|
)
|
Net loss per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share, basic and diluted
|
|
|
$
|
(0.13
|
)
|
|
|
$
|
(0.19
|
)
|
|
|
|
$
|
(0.63
|
)
|
|
|
$
|
(0.92
|
)
|
Weighted average common shares outstanding, basic and diluted
|
|
|
|
41,777
|
|
|
|
|
40,258
|
|
|
|
|
|
41,218
|
|
|
|
|
39,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based compensation expenses as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
Cost of revenues
|
|
|
$
|
1,203
|
|
|
|
$
|
635
|
|
|
|
|
$
|
3,729
|
|
|
|
$
|
2,043
|
|
Sales and marketing
|
|
|
|
1,101
|
|
|
|
|
717
|
|
|
|
|
|
3,243
|
|
|
|
|
2,231
|
|
Research and development
|
|
|
|
1,337
|
|
|
|
|
884
|
|
|
|
|
|
4,464
|
|
|
|
|
2,934
|
|
General and administrative
|
|
|
|
2,672
|
|
|
|
|
1,583
|
|
|
|
|
|
9,503
|
|
|
|
|
5,432
|
|
Total stock-based compensation expenses
|
|
|
$
|
6,313
|
|
|
|
$
|
3,819
|
|
|
|
|
$
|
20,939
|
|
|
|
$
|
12,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes amortization of acquired technology of
$0.9 million and $0.8 million for the three months ended December
31, 2017 and 2016, respectively, and $3.6 million and $3.2 million
for the twelve months ended December 31, 2017 and 2016,
respectively.
|
|
|
Q2 Holdings, Inc.
|
Condensed Consolidated Statements of Cash Flows
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(26,164
|
)
|
|
|
$
|
(36,354
|
)
|
Adjustments to reconcile net loss to net cash provided by
operating activities:
|
|
|
|
|
|
|
Amortization of deferred implementation, solution and other costs
|
|
|
|
7,455
|
|
|
|
|
6,775
|
|
Depreciation and amortization
|
|
|
|
14,946
|
|
|
|
|
12,199
|
|
Amortization of debt issuance costs
|
|
|
|
28
|
|
|
|
|
96
|
|
Amortization of premiums on investments
|
|
|
|
319
|
|
|
|
|
425
|
|
Stock-based compensation expenses
|
|
|
|
20,939
|
|
|
|
|
12,640
|
|
Deferred income taxes
|
|
|
|
(350
|
)
|
|
|
|
281
|
|
Other non-cash charges
|
|
|
|
30
|
|
|
|
|
254
|
|
Changes in operating assets and liabilities
|
|
|
|
(7,731
|
)
|
|
|
|
7,078
|
|
Cash provided by operating activities
|
|
|
|
9,472
|
|
|
|
|
3,394
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Net redemptions of investments
|
|
|
|
158
|
|
|
|
|
945
|
|
Purchases of property and equipment
|
|
|
|
(12,315
|
)
|
|
|
|
(14,349
|
)
|
Business combinations and asset acquisitions, net of cash acquired
|
|
|
|
(3,816
|
)
|
|
|
|
(95
|
)
|
Capitalization of software development costs
|
|
|
|
(970
|
)
|
|
|
|
(2,692
|
)
|
Purchases of intangible assets
|
|
|
|
-
|
|
|
|
|
(323
|
)
|
Increase in restricted cash
|
|
|
|
(1,000
|
)
|
|
|
|
-
|
|
Cash used in investing activities
|
|
|
|
(17,943
|
)
|
|
|
|
(16,514
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Payments on financing obligations and capital leases, net
|
|
|
|
-
|
|
|
|
|
(5,059
|
)
|
Proceeds from issuance of common stock
|
|
|
|
11,559
|
|
|
|
|
6,003
|
|
Net cash provided by financing activities
|
|
|
|
11,559
|
|
|
|
|
944
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
3,088
|
|
|
|
|
(12,176
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
|
54,873
|
|
|
|
|
67,049
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
57,961
|
|
|
|
$
|
54,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
GAAP gross profit
|
|
|
$
|
25,131
|
|
|
|
$
|
21,009
|
|
|
|
|
$
|
94,493
|
|
|
|
$
|
72,795
|
|
Stock-based compensation
|
|
|
|
1,203
|
|
|
|
|
635
|
|
|
|
|
|
3,729
|
|
|
|
|
2,043
|
|
Amortization of acquired technology
|
|
|
|
914
|
|
|
|
|
798
|
|
|
|
|
|
3,624
|
|
|
|
|
3,191
|
|
Non-GAAP gross profit
|
|
|
$
|
27,248
|
|
|
|
$
|
22,442
|
|
|
|
|
$
|
101,846
|
|
|
|
$
|
78,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit
|
|
|
$
|
27,248
|
|
|
|
$
|
22,442
|
|
|
|
|
$
|
101,846
|
|
|
|
$
|
78,029
|
|
GAAP revenue
|
|
|
|
51,703
|
|
|
|
|
42,155
|
|
|
|
|
|
193,978
|
|
|
|
|
150,224
|
|
Non-GAAP gross margin
|
|
|
|
52.7
|
%
|
|
|
|
53.2
|
%
|
|
|
|
|
52.5
|
%
|
|
|
|
51.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP sales and marketing expense
|
|
|
$
|
10,292
|
|
|
|
$
|
9,486
|
|
|
|
|
$
|
41,170
|
|
|
|
$
|
36,284
|
|
Stock-based compensation
|
|
|
|
(1,101
|
)
|
|
|
|
(717
|
)
|
|
|
|
|
(3,243
|
)
|
|
|
|
(2,231
|
)
|
Non-GAAP sales and marketing expense
|
|
|
$
|
9,191
|
|
|
|
$
|
8,769
|
|
|
|
|
$
|
37,927
|
|
|
|
$
|
34,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and development expense
|
|
|
$
|
10,673
|
|
|
|
$
|
8,508
|
|
|
|
|
$
|
40,338
|
|
|
|
$
|
32,460
|
|
Stock-based compensation
|
|
|
|
(1,337
|
)
|
|
|
|
(884
|
)
|
|
|
|
|
(4,464
|
)
|
|
|
|
(2,934
|
)
|
Non-GAAP research and development expense
|
|
|
$
|
9,336
|
|
|
|
$
|
7,624
|
|
|
|
|
$
|
35,874
|
|
|
|
$
|
29,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP general and administrative expense
|
|
|
$
|
9,863
|
|
|
|
$
|
8,477
|
|
|
|
|
$
|
37,179
|
|
|
|
$
|
31,959
|
|
Stock-based compensation
|
|
|
|
(2,672
|
)
|
|
|
|
(1,583
|
)
|
|
|
|
|
(9,503
|
)
|
|
|
|
(5,432
|
)
|
Non-GAAP general and administrative expense
|
|
|
$
|
7,191
|
|
|
|
$
|
6,894
|
|
|
|
|
$
|
27,676
|
|
|
|
$
|
26,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating loss
|
|
|
$
|
(6,328
|
)
|
|
|
$
|
(7,342
|
)
|
|
|
|
$
|
(26,907
|
)
|
|
|
$
|
(35,718
|
)
|
Stock-based compensation
|
|
|
|
6,313
|
|
|
|
|
3,819
|
|
|
|
|
|
20,939
|
|
|
|
|
12,640
|
|
Acquisition related costs
|
|
|
|
263
|
|
|
|
|
1,514
|
|
|
|
|
|
1,232
|
|
|
|
|
6,307
|
|
Amortization of acquired technology
|
|
|
|
914
|
|
|
|
|
798
|
|
|
|
|
|
3,624
|
|
|
|
|
3,191
|
|
Amortization of acquired intangibles
|
|
|
|
368
|
|
|
|
|
366
|
|
|
|
|
|
1,481
|
|
|
|
|
1,470
|
|
Unoccupied lease charges
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
33
|
|
Non-GAAP operating income (loss)
|
|
|
$
|
1,530
|
|
|
|
$
|
(845
|
)
|
|
|
|
$
|
369
|
|
|
|
$
|
(12,077
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
|
$
|
(5,521
|
)
|
|
|
$
|
(7,513
|
)
|
|
|
|
$
|
(26,164
|
)
|
|
|
$
|
(36,354
|
)
|
Stock-based compensation
|
|
|
|
6,313
|
|
|
|
|
3,819
|
|
|
|
|
|
20,939
|
|
|
|
|
12,640
|
|
Acquisition related costs
|
|
|
|
263
|
|
|
|
|
1,514
|
|
|
|
|
|
1,232
|
|
|
|
|
6,307
|
|
Amortization of acquired technology
|
|
|
|
914
|
|
|
|
|
798
|
|
|
|
|
|
3,624
|
|
|
|
|
3,191
|
|
Amortization of acquired intangibles
|
|
|
|
368
|
|
|
|
|
366
|
|
|
|
|
|
1,481
|
|
|
|
|
1,470
|
|
Unoccupied lease charges
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
33
|
|
Non-GAAP net income (loss)
|
|
|
$
|
2,337
|
|
|
|
$
|
(1,016
|
)
|
|
|
|
$
|
1,112
|
|
|
|
$
|
(12,713
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
41,777
|
|
|
|
|
40,258
|
|
|
|
|
|
41,218
|
|
|
|
|
39,649
|
|
Weighted-average effect of potentially dilutive shares
|
|
|
|
1,976
|
|
|
|
|
-
|
|
|
|
|
|
2,064
|
|
|
|
|
-
|
|
Pro forma diluted weighted-average number of common shares
|
|
|
|
43,753
|
|
|
|
|
40,258
|
|
|
|
|
|
43,282
|
|
|
|
|
39,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of non-GAAP income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss)
|
|
|
$
|
2,337
|
|
|
|
$
|
(1,016
|
)
|
|
|
|
$
|
1,112
|
|
|
|
$
|
(12,713
|
)
|
Diluted weighted-average number of common shares (pro forma for
three and twelve months ended December 31, 2017)
|
|
|
|
43,753
|
|
|
|
|
40,258
|
|
|
|
|
|
43,282
|
|
|
|
|
39,649
|
|
Non-GAAP net income (loss) per share
|
|
|
$
|
0.05
|
|
|
|
$
|
(0.03
|
)
|
|
|
|
$
|
0.03
|
|
|
|
$
|
(0.32
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net loss to adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
|
$
|
(5,521
|
)
|
|
|
$
|
(7,513
|
)
|
|
|
|
$
|
(26,164
|
)
|
|
|
$
|
(36,354
|
)
|
Depreciation and amortization
|
|
|
|
3,897
|
|
|
|
|
3,264
|
|
|
|
|
|
14,946
|
|
|
|
|
12,199
|
|
Stock-based compensation
|
|
|
|
6,313
|
|
|
|
|
3,819
|
|
|
|
|
|
20,939
|
|
|
|
|
12,640
|
|
(Benefit from) provision for income taxes
|
|
|
|
(670
|
)
|
|
|
|
97
|
|
|
|
|
|
(314
|
)
|
|
|
|
427
|
|
Interest (income) expense, net
|
|
|
|
(137
|
)
|
|
|
|
74
|
|
|
|
|
|
(429
|
)
|
|
|
|
209
|
|
Acquisition related costs
|
|
|
|
263
|
|
|
|
|
1,514
|
|
|
|
|
|
1,232
|
|
|
|
|
6,307
|
|
Unoccupied lease charges
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
33
|
|
Adjusted EBITDA
|
|
|
$
|
4,145
|
|
|
|
$
|
1,255
|
|
|
|
|
$
|
10,210
|
|
|
|
$
|
(4,539
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180214006132/en/
Source: Q2 Holdings, Inc.